The US Office of the Comptroller of the Currency (OCC) has eased restrictions on banks engaging with cryptocurrency. This move comes just hours after the US President vowed to end the long-standing crackdown on crypto firms’ access to banking services.
The OCC issued Interpretive Letter 1183 to clarify that national banks and federal savings associations can engage in cryptocurrency activities. These include easier Bankypto-asset custody, stablecoin-related services, and participation in independent node verification networks like distributed ledger technology.
Easier access to crypto services for banks
Previously, banks needed supervisory approval before engaging in these activities. The new guidance removes this requirement. Banks will no longer need to prove they have adequate controls before offering crypto-related services.
The OCC emphasized that banks must maintain strong risk management controls for all activities related to cryptocurrency. It stated that its approach would be consistent regardless of the underlying technology.
This step is expected to ease regulatory burdens and provide clarity for financial institutions looking to expand into digital assets. As part of this shift, the OCC has also withdrawn its participation in previous joint statements on crypto-asset and liquidity risks for banking organizations.
Regulatory shift opens doors for crypto in banking
These statements had warned about potential market vulnerabilities and regulatory concerns tied to digital assets. The change marks a significant development in the relationship between traditional banking and the crypto industry.
It signals a more open regulatory stance, allowing banks to engage with digital assets without facing excessive compliance hurdles. Crypto advocates have long pushed for clearer regulations, arguing that uncertainty has stifled innovation and financial inclusion.
The OCC’s decision reflects a broader shift in regulatory policy that could foster greater integration between traditional finance and cryptocurrency. With this new guidance, national banks and federal savings associations now have more freedom to explore opportunities in the crypto space. The financial sector is expected to respond with new services and partnerships, shaping the future of digital banking in the US.
