Key Highlights:
- The Office of the Comptroller of the Currency (OCC) has announced that federally regulated banks can engage in a variety of cryptocurrency activities without seeking prior approval.
- The OCC has officially withdrawn a statement made in 2023 regarding liquidity risks associated with banks involved in crypto, signaling a change in stance on the potential impacts of the cryptocurrency sector on financial stability.
Details
Federally regulated banks may now undertake various cryptocurrency-related tasks legally, such as providing crypto custody services, engaging in certain stablecoin activities, and executing node operations, as clarified in a new interpretive letter released by the OCC.
According to Acting Comptroller Rodney E. Hood:
“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones.”
This recent directive aims to simplify the process for banks looking to participate in crypto-related endeavors, ensuring a consistent regulatory approach from the OCC regardless of the underlying technology.
As part of this interpretive shift, the OCC has opted to rescind a prior statement concerning crypto liquidity risks that was positioned as a concern for banks, indicating a move away from previous regulatory apprehensions towards the growing crypto market.
