The OCC has authorized 1,200 U.S. banks to engage in cryptocurrency activities, lifting restrictions on crypto custody, stablecoins, and blockchain transactions. Learn how this regulatory shift impacts the banking sector.
OCC Clears National Banks for Crypto Engagement
The Office of the Comptroller of the Currency (OCC) has officially authorized 1,200 national banks and federal savings associations to engage in cryptocurrency activities. The regulatory update, announced on March 7, removes prior restrictions and allows broader participation in crypto custody, stablecoin activities, and blockchain verification networks.
Regulatory Shift Opens Crypto Access for Banks
The OCC detailed its decision in Interpretive Letter 1183, clarifying that national banks and federal savings associations can now:
- Custody crypto assets for customers.
- Engage in stablecoin transactions and hold reserves.
- Participate in distributed ledger networks for payment processing and verification.
This move rescinds OCC Interpretive Letter 1179 (issued in 2021), which previously required banks to obtain supervisory non-objection before engaging in crypto activities. The OCC also withdrew from two interagency statements that outlined crypto-related risks for banks.
Regulatory Oversight and Risk Management
Acting Comptroller Rodney E. Hood emphasized that while the restrictions have eased, banks must maintain strong risk management controls for crypto-related activities.
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, Hood stated.
The OCC reassured that it will continue supervising crypto banking activities, particularly in custody services, stablecoin reserves, and blockchain-based payments.
Impact on the Banking Sector
The OCC oversees 1,200 national banks, federal savings associations, and 50 foreign bank branches, collectively holding over two-thirds of U.S. commercial banking assets. This new guidance encourages responsible crypto innovation while reducing regulatory burdens.
This decision marks a significant shift in U.S. crypto policy, signaling increased institutional adoption of digital assets.
As the regulatory landscape evolves, financial institutions should review the new OCC guidelines and assess opportunities in crypto banking services.
