The Office of the Comptroller of the Currency (OCC) has given US banks the green light to dive deeper into the world of crypto and stablecoins.
Easier Crypto Regulations for Banks
In a recent announcement, the OCC stated that banks can now handle crypto assets, participate in stablecoin activities, and even join node verification networks. They’re also dropping a previous requirement that forced banks to get pre-approval for any crypto-related activities.
Acting Comptroller’s Statement
Acting Comptroller Rodney E. Hood explained that the OCC expects banks to maintain strong risk management, just like they do with traditional banking. He emphasized that this change will simplify things for banks involved in crypto and ensure consistent treatment by the OCC, regardless of the technology used. Hood reiterated his commitment to effective, but not overly burdensome, regulations.
Reversal of Previous Stance
The OCC had previously issued a letter (since retracted) under the Biden administration, requiring banks to get the OCC’s approval before engaging in any crypto activities. The new clarification states that these activities are now legally permissible, provided the bank can demonstrate it has adequate safety and security measures in place. Banks still need written confirmation from their supervisory office before proceeding.
