WASHINGTON, March 7 (Reuters) - The U.S. regulator overseeing national banks clarified on Friday that banks can participate in certain crypto activities without prior approval from regulators.
The Office of the Comptroller of the Currency stated that national banks are allowed to carry out certain crypto activities, including crypto-asset custody, some stablecoin activities, and involvement in distributed ledger networks.
Moreover, the OCC revoked previous guidance that required banks to seek clearance from regulators before engaging in crypto activities, including demonstrating they have adequate controls in place for such business.
Acting Comptroller Rodney Hood emphasized that banks must have risk management procedures in place regardless of the technology used. The announcement coincided with a crypto summit at the White House and followed President Donald Trump's executive order regarding bitcoin and select cryptocurrencies.
Hood stated, “Today’s action will relieve banks of the burden associated with conducting crypto-related activities and ensure consistent treatment of these activities by the OCC, irrespective of the underlying technology."
In particular, the OCC withdrew guidance issued to banks under former President Joe Biden's administration, which imposed additional requirements on banks wishing to participate in certain crypto activities. The repealed directives mandated that banks inform their supervisors in advance of crypto activities, outline risk management strategies, and ensure supervisor approval.
Additionally, the OCC retracted from joint statements previously issued by U.S. regulators advising banks to be cautious when dealing with crypto. One such advisory released in 2023 did not prohibit banks from conducting crypto-related business but highlighted the sector's susceptibility to "significant volatility" and warned that any bank involvement would be closely monitored.