In the past few months, the federal Office of the Comptroller of the Currency (OCC) has indicated a more lenient regulatory approach for national banks and federal savings associations regarding crypto-asset operations. “I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system,” stated Acting Comptroller of the Currency, Rodney E. Hood earlier this year.
On March 7, the OCC began formalizing its transition from its previous administration’s regulatory framework through the issuance of Interpretive Letter 1183. This letter rescinded the previous supervisory non-objection requirement for banks wishing to participate in crypto-related activities, effectively reducing bureaucratic barriers.
The OCC followed this action with Interpretive Letter 1184 in May, which further affirmed that banks can now engage in specific crypto-asset operations and highlighted the involvement of third-party services like fintech companies in these activities.
Key Takeaways:
- Banks no longer need undergo a supervisory non-objection process before offering cryptocurrency-related products and services.
- This change significantly lowers barriers for crypto-asset banking, though supervisory standards will still apply.
- The OCC continues to support banks providing custody services, holding stablecoin reserves, and other payment services related to stablecoins.
- Banks should be proactive in establishing compliance processes for crypto-asset activities.
The OCC’s latest letters indicate a shift from the previous cautious regulatory posture under the Biden administration, reinforcing banks’ ability to engage in crypto-asset activities and allowing them to utilize third-party custodians for these services.
What are the Recent Interpretive Letters Doing?
These letters signal a more open regulatory environment for banks looking to explore opportunities in cryptocurrency without requiring prior approval, marking a significant change in stance.
