WASHINGTON, March 7 (Reuters) – The U.S. regulator overseeing national banks announced on Friday a clarification of its stance on cryptocurrency, easing restrictions on banks’ involvement in the digital asset space. The Office of the Comptroller of the Currency (OCC) stated that national banks are now permitted to engage in some crypto activities without first securing explicit approval from regulators.
According to the OCC’s statement, permissible activities include crypto-asset custody, certain stablecoin-related activities, and participation in distributed ledger networks. This represents a shift from previous guidelines that required banks to seek advance clearance from regulators, including demonstrating adequate risk management controls.
The acting comptroller, Rodney Hood, emphasized the importance of risk management, stating, “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology.”
The announcement coincided with a crypto summit hosted by the White House and followed an executive order signed by President Donald Trump establishing a strategic reserve for bitcoin and a few other cryptocurrencies. The decision to relax guidelines reflects a broader trend of integrating cryptocurrencies into the existing financial landscape.
Specifically, the OCC rescinded guidance issued during the previous administration, which had imposed additional requirements on banks wishing to engage in crypto. These older guidelines mandated that banks inform their supervisors of crypto activities, detail their risk management strategies, and ensure supervisory non-objection.
The OCC also withdrew from joint statements previously issued by U.S. regulators, which had cautioned banks against engaging with crypto. Notably, a 2023 statement, while not prohibiting crypto business, highlighted the sector’s volatility and indicated that any bank activities would be closely scrutinized.
Reporting by Pete Schroeder Editing by Chris Reese and David Gregorio
