Reuters reported that the U.S. Office of the Comptroller of the Currency (OCC), the U.S. regulator responsible for overseeing national banks, clarified on Friday that banks can engage in some cryptocurrency activities and removed the expectation that companies should obtain prior permission from the regulator before doing so. The U.S. Office of the Comptroller of the Currency said in a statement that national banks are allowed to engage in some cryptocurrency activities, such as crypto asset custody, some stablecoin activities, and participation in distributed ledger networks.
The OCC also rescinded previous guidance that banks should clarify cryptocurrency activities with regulators in advance, including demonstrating that they have adequate controls over the business.
Acting Comptroller Rodney Hood said in a statement that the new guidance makes it clear that banks must have risk management measures in place regardless of the technology they use. The announcement came on the same day as the White House hosted a cryptocurrency summit and hours after U.S. President Donald Trump signed an executive order to establish a strategic reserve for Bitcoin and a number of other cryptocurrencies.
"Today's action will reduce the burden on banks engaging in cryptocurrency-related activities and ensure that these banking activities are treated consistently by the OCC regardless of the underlying technology," Hood said in a statement.
Specifically, the U.S. Office of the Comptroller of the Currency on Friday rescinded banking guidance issued during the administration of former President Joe Biden that effectively set up additional red flags for banks seeking to engage in certain cryptocurrency activities. The withdrawn letters told banks they should brief regulators on cryptocurrency activity beforehand, explain how they would handle risks and ensure regulators had no objections.
The OCC also rescinded previous joint statements issued by U.S. regulators that effectively warned banks not to engage in cryptocurrency activities. One of the statements, issued in 2023, did not ban banks from conducting cryptocurrency business, but warned that the industry was prone to "significant volatility" and said that any banking activities would be subject to strict scrutiny.