OCC Greenlights Crypto Activities for Banks Without Prior Approval

The Office of the Comptroller of the Currency (OCC) has clarified that federally regulated banks can engage in cryptocurrency activities without seeking prior approval. This update, issued in a new interpretive letter, allows national banks and federal savings associations to provide crypto custody, conduct stablecoin transactions, and operate blockchain nodes.

Acting Comptroller of the Currency Rodney E. Hood emphasized that banks must maintain strong risk management controls for crypto-related activities, just as they do for traditional banking operations. He stated that the decision reduces regulatory burdens and ensures consistent oversight, regardless of the technology involved.

Notably, the OCC has withdrawn its 2023 statement on liquidity risks associated with crypto, signaling a shift in its stance on financial stability concerns. The move suggests a more favorable regulatory environment for banks exploring digital assets, reinforcing their ability to integrate blockchain technology into financial services.

This policy shift aligns with the growing adoption of cryptocurrencies in mainstream finance, potentially accelerating innovation and competition among banks offering digital asset services. With clear guidelines from the OCC, financial institutions now have greater flexibility to engage in crypto-related activities while maintaining compliance.