In a significant policy shift, the Office of the Comptroller of the Currency (OCC) has reaffirmed that U.S. banks can engage in cryptocurrency-related activities.
According to an announcement by Acting Comptroller of the Currency Rodney E. Hood, US banks will be able to offer services such as crypto custody and stablecoin transactions, in addition to being able to participate in blockchain networks.
The OCC’s newly published Interpretive Letter 1183 officially rescinds previous restrictions imposed under the Biden administration, which required banks to seek regulatory approval before engaging in crypto-related services. The move effectively reverses Interpretive Letter 1179, issued in 2021 during the Biden administration, which had placed additional compliance hurdles on national banks looking to provide crypto custody and other blockchain services.
“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 said. “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently, regardless of the underlying technology.”
Under the new guidance, banks can:
- Custody cryptocurrency assets for clients.
- Hold reserves for stablecoins under certain conditions.
- Act as nodes on blockchain networks to verify transactions.
In addition to reinstating these permissions, the OCC has withdrawn its participation in joint statements that had warned banks about crypto-related risks, signaling a more open regulatory stance toward the industry.
The reversal marks a clear departure from the Biden administration’s cautious approach to crypto in banking and aligns with earlier OCC guidance issued in 2020 and 2021 under then-Comptroller Brian Brooks.
Industry experts believe the new policy will open doors for traditional banks to integrate cryptocurrency services without additional regulatory red tape. However, banks will still be expected to comply with existing financial regulations and implement robust risk management frameworks when engaging in crypto-related activities.
This shift could also reignite institutional interest in crypto markets, as banks previously sidelined by regulatory uncertainty may now explore offering digital asset services – especially in the increasingly competitive crypto custody sector.
What Is The Office Of The Comptroller?
The Office of the Comptroller of the Currency (OCC) is an independent bureau within the U.S Treasury that charters, regulates, and supervises all national banks and federal savings associations, as well as the federal branches and agencies of foreign banks operating in the US.
