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    Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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U.S. Banks Can Now Offer Crypto Services Without OCC Approval

Story Highlights
  • The OCC now allows federally regulated banks to engage in crypto activities (custody, stablecoins, nodes) without prior approval.

  • This reverses previous stricter guidance and removes regulatory warnings against bank involvement in crypto.

  • The move, coinciding with a White House crypto summit and Trump's executive order, signals a shift towards less restrictive crypto regulation.

For years, U.S. banks wanting to engage with cryptocurrency faced regulatory roadblocks. But thatโ€™s changing. In a major shift, the regulator overseeing national banks has now made it clear: federally regulated banks can offer crypto services without needing prior approval.

This decision could open the doors for more banks to enter the crypto space, making digital assets more accessible than ever. But what led to this policy change?

Letโ€™s break it down.

Crypto Custody and Stablecoins Get the Greenlight

The OCC clarified in a new interpretive letter that national banks and federal savings associations are allowed to offer crypto custody services, manage stablecoin activities, and even operate blockchain nodes.

โ€œThe OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,โ€ said Acting Comptroller of the Currency Rodney E. Hood.

This move is expected to ease pressure on banks involved in crypto, ensuring that these activities are treated consistently, regardless of the technology used.

OCC Reverses Biden-Era Crypto Restrictions

Alongside this decision, the OCC withdrew previous guidance from President Joe Bidenโ€™s administration that had imposed extra steps for banks wanting to engage in crypto. Earlier rules required banks to notify regulators, explain their risk management plans, and obtain approval before offering crypto services.

The OCC also revoked past warnings from U.S. regulators that had discouraged banks from dealing with crypto. A 2023 statement did not ban crypto activities outright but cautioned that the sector is highly volatile and would face strict oversight.

While the crypto industry welcomed the OCCโ€™s new stance, some remain cautious. Custodia Bank CEO Caitlin Long tweeted on March 7 that โ€œOperation Chokepoint 2.0 isnโ€™t overโ€ until the U.S. Federal Reserve and the FDIC also lift their anti-crypto policies.

It’s the Crypto Era Now

The announcement came on the same day as a major development from the White House. President Donald Trump signed an executive order creating a strategic reserve for Bitcoin and other cryptocurrencies.

At the White House Crypto Summit, Trump declared he was โ€œending Operation Chokepoint 2.0,โ€ accusing the program of unfairly pressuring banks to cut off crypto businesses and block transfers to exchanges. He claimed the crackdown was politically motivated and was being lifted for votes rather than the right reasons.

With the OCC easing restrictions and the White House showing support for crypto, U.S. regulations on digital assets are shifting. However, with the Federal Reserve and FDIC still maintaining their policies, the fight over crypto banking is far from over.

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