Key Points
- The OCC reaffirmed on March 7 that some crypto activities are permissible in the federal banking system.
- Official notes mention stablecoin activities and custody services among others.
The Office of the Comptroller of the Currency (OCC) in the US reaffirmed on March 7 that a range of crypto activities are permitted in the federal banking system. This translates into increased potential for digital asset adoption.
Key Confirmations from the US OCC
Yesterday, the OCC published its Interpretive Letter 1183, confirming the following permissions for national banks and federal savings associations:
- Certain stablecoin activities
- Participation in independent node verification networks such as distributed ledger
- Custodying crypto for customers
The letter rescinds OCC-supervised institutions’ requirement to receive supervisory nonobjection and prove that they have adequate control before engaging in the crypto activities mentioned above.
OCC’s Expectations and Decision Benefits
The Acting Comptroller of the Currency, Rodney E. Hood, said that the OCC expects banks to have the same strong risk management controls set in place for crypto activities, as they do for the traditional ones. This way, they will be able to support innovation, according to him.
He also highlighted the benefits of OCC’s latest action:
- Reducing the burden on banks to engage in crypto activities
- Ensuring that bank activities are treated consistently by the OCC, regardless of the underlying technology
- Making sure that regulations are effective and not excessive
- Maintaining a strong federal banking system
The OCC concluded its official notes by saying that it withdraws its participation in the joint statement on:
- The joint statement on crypto risks to banking organizations
- The joint statement on liquidity risks to banking organizations resulting from crypto market vulnerabilities
A New Era for Crypto Begins
Yesterday’s OCC decisions will support ushering in a new era for Bitcoin and the digital asset industry, supporting adoption, and clarifying regulations.
Banks’ abilities to engage in certain crypto operations under new legislation will offer more trust to people interested in digital assets.
The latest development comes as the US White House organized the first Crypto Summit hosted by the US President Donald Trump which also brought bullish news for the industry, supporting a Bitcoin Strategic Reserve and highlighting the end of the war on crypto.
