US Regulator Simplifies Rules, Allowing Banks to Enter Crypto Space
WASHINGTON – The U.S. banking regulator has adjusted its stance on cryptocurrency, making it easier for national banks to participate in some crypto-related activities. The Office of the Comptroller of the Currency (OCC) announced the changes on Friday.
The OCC stated that national banks are now expressly permitted to engage in activities like crypto-asset custody, dealing with certain stablecoins, and participation in distributed ledger networks. A key element of the new guidance is the removal of the previous requirement for banks to seek advance permission from regulators before beginning these activities.
Rodney Hood, acting comptroller, emphasized that banks, regardless of the technology involved, must maintain robust risk management practices. “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 change rescinds guidance issued during the previous administration that required banks to brief supervisors on proposed crypto activities, detail their risk management strategies, and ensure supervisors had no objections. The OCC also withdrew from previous joint statements from U.S. regulators that cautioned banks about engaging with crypto.
A 2023 statement, while not prohibiting crypto business, highlighted the sector’s volatility and indicated any bank activities would be closely monitored. The announcement coincided with a White House crypto summit and occurred shortly after President Donald Trump signed an executive order establishing a strategic reserve for bitcoin and a few other cryptocurrencies.
