The U.S. regulator overseeing national banks has updated its stance on cryptocurrency, signaling a more permissive approach to banks’ involvement in the digital asset space.
The Office of the Comptroller of the Currency (OCC) announced on Friday that banks are now expressly permitted to engage in specific crypto-related activities. These include providing crypto-asset custody services, participating in certain stablecoin activities, and engaging with distributed ledger networks.
Crucially, the OCC has rescinded prior guidance that required banks to seek advance clearance from regulators before undertaking crypto activities. This previous guidance mandated that banks demonstrate adequate risk management controls for their proposed ventures.
Acting Comptroller Rodney Hood emphasized that the new guidance underscores the need for banks to maintain robust risk management practices, irrespective of the technology involved. “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,” Hood stated.
The announcement coincided with a White House crypto summit and came shortly after a presidential executive order. President Donald Trump signed an executive order to establish a strategic reserve for Bitcoin and a limited number of other cryptocurrencies.
Specifically, the OCC has withdrawn guidance issued during the previous presidential administration which effectively set up roadblocks for banks seeking to engage in crypto. That guidance had required banks to brief supervisors on their crypto activities, demonstrate their risk management strategies, and obtain supervisory approval.
The OCC has also withdrawn from joint statements by U.S. regulators that cautioned banks against involvement with crypto assets. One such statement, issued in 2023, did not ban banks from engaging with crypto but warned of the sector’s volatility and said any bank activities would be closely scrutinized.
This move by the OCC is seen as a step towards greater integration of cryptocurrencies within the traditional financial system. With the removal of prior approval requirements, banks now have more flexibility.
