The Office of the Comptroller of the Currency (OCC) announced Friday that national banks can engage in certain cryptocurrency activities without seeking advance permission from regulators, marking a significant shift in regulatory approach.
According to the OCC's statement, national banks are permitted to participate in several crypto-related activities, including:
- Crypto-asset custody services
- Specific stablecoin activities
- Participation in distributed ledger networks
The agency has rescinded previous guidance that required banks to obtain prior clearance from regulators before engaging in cryptocurrency business. This previous guidance had mandated that banks demonstrate adequate risk controls before entering the crypto space.
"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," said Rodney Hood, acting comptroller, in a statement.
The announcement coincided with a White House crypto summit and came hours after President Donald Trump signed an executive order establishing a strategic reserve for bitcoin and select other cryptocurrencies.
The OCC specifically withdrew guidance issued during the Biden administration that had established additional safeguards for banks looking to engage in cryptocurrency activities. The rescinded letters had required banks to brief their supervisors on planned crypto activities, demonstrate their risk management approach, and ensure regulators had no objections.
Additionally, the OCC withdrew from joint regulatory statements that had cautioned banks about cryptocurrency engagement. One such statement from 2023, while not prohibiting banks from crypto business, had warned about the sector's "significant volatility" and indicated that any such banking activities would face close scrutiny.
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