The U.S. regulator overseeing national banks, the Office of the Comptroller of the Currency, clarified on Friday that banks are allowed to engage in certain cryptocurrency activities without the need for prior approval from regulators.
In a statement, the OCC specified that national banks can partake in crypto-related activities like crypto-asset custody, certain stablecoin activities, and participation in distributed ledger networks. The regulator also eliminated the requirement for banks to seek clearance from regulators in advance and demonstrate sufficient controls for such operations.
Rodney Hood, acting comptroller, emphasized the importance of having proper risk management practices regardless of the technology involved. This guidance was issued on the same day as a White House crypto summit and shortly after President Donald Trump signed an executive order regarding bitcoin and other cryptocurrencies.
Hood highlighted that the new rules would ease the burden on banks with regard to crypto-related activities and ensure consistent treatment by the OCC across different technologies.
The OCC rescinded previous guidelines set during the administration of former President Joe Biden, which had imposed stricter conditions on banks intending to enter the crypto space. The withdrawn directives required banks to inform supervisors in advance about their crypto ventures, outline risk management strategies, and obtain supervisor approval.
Additionally, the OCC retracted from previous cautionary statements jointly issued by U.S. regulators that advised banks to be cautious about dealing with cryptocurrencies. While not prohibiting banks from crypto activities, the statements, dating back to 2023, underscored the potential volatility in the sector and assured rigorous scrutiny of any related bank operations.