U.S. Banks Can Now Offer Crypto Custody & Stablecoin Services Without OCC Approval
The post U.S. Banks Can Now Offer Crypto Custody & Stablecoin Services Without OCC Approval appeared first on Coinpedia Fintech News
The U.S. regulator overseeing national banks provided clarification on Friday that federally regulated banks can now engage in various cryptocurrency activities without needing prior approval.
In its new interpretive letter, the OCC clarified that national banks and federal savings associations are allowed to offer crypto custody services, handle certain stablecoin activities, and operate nodes.
“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,” said Acting Comptroller of the Currency Rodney E. Hood.
It remarked that this decision will ease the pressure on banks involved in crypto activities and ensures that these activities are treated consistently by the OCC, regardless of the technology used.
On Friday, the OCC withdrew guidance issued during President Joe Biden’s administration, which had imposed extra requirements on banks wanting to engage in certain crypto activities. The previous letters told banks to brief their supervisors on crypto activities beforehand, explain how they would manage risks, and get approval before proceeding with crypto activities.
The OCC also removed joint statements from U.S. regulators that had warned banks against engaging with crypto. A 2023 statement didn’t ban crypto business but cautioned that the sector is highly volatile and that any crypto-related activities by banks would face close scrutiny.
The announcement came on the same day the White House held a crypto summit, just hours after President Donald Trump signed an executive order creating a strategic reserve for bitcoin and other cryptocurrencies.
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