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The Office of the Comptroller of the Currency (OCC) has clarified that national banks can engage in certain cryptocurrency-related activities without requiring prior regulatory approval. This decision marks a significant shift in the regulatory stance toward crypto adoption within the banking sector.
In a statement released Friday, the OCC confirmed that banks are permitted to offer crypto-asset custody services, participate in distributed ledger networks, and engage in select stablecoin activities. Additionally, the regulator rescinded previous guidance that required banks to seek advance permission before engaging in such activities, including demonstrating risk controls.
Acting Comptroller Rodney Hood emphasized that while banks are free to explore crypto opportunities, they must implement robust risk management frameworks to mitigate associated risks. “Today’s action reduces regulatory burdens on banks seeking to engage in crypto-related activities while ensuring consistency in oversight, regardless of the technology used,” Hood stated.
This announcement coincided with a White House-hosted crypto summit and an executive order signed by President Donald Trump, establishing a strategic reserve for Bitcoin and other cryptocurrencies.
The OCC’s decision also reverses guidance issued under former President Joe Biden’s administration, which mandated additional oversight for banks engaging in crypto services. Previous regulations required banks to consult with supervisors before entering the crypto market and demonstrate adequate risk mitigation measures.
Furthermore, the OCC has withdrawn from prior joint statements issued by U.S. financial regulators that warned of crypto’s volatility and the potential risks associated with banking sector involvement. One such 2023 statement did not outright ban banks from engaging in crypto-related businesses but cautioned that such activities would be closely monitored.
This regulatory shift is expected to provide banks with greater flexibility to explore crypto integration while maintaining compliance with existing financial regulations.
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