
U.S. national banks have been informed by the Office of the Comptroller of the Currency (OCC) that they will no longer have to evaluate how controversial clients might affect their reputations—a concern raised by crypto companies and insiders who argue that this issue led to their debanking.
The OCC has officially removed this requirement from its supervisory handbook, as stated in their announcement on Thursday.
“The OCC’s examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion,” said Acting Comptroller of the Currency Rodney Hood.
Federal Reserve Chair Jerome Powell had previously made a similar pledge in a congressional hearing last month, committing to eliminate such scrutiny from internal supervision manuals.
The OCC is actively working to facilitate compliance for banks involved in cryptocurrency activities. It has recently rescinded prior guidance that mandated banks to receive written pre-approval from the OCC to operate in digital asset business lines.
Looking ahead, the OCC may soon appoint a permanent leader as President Trump’s nominee, Jonathan Gould, is set to undergo a Senate confirmation hearing next week. The head of the OCC typically has more latitude to make swift decisions compared to other financial regulators, as they operate independently without the need for commission or board consensus.