U.S. Banks Can Now Offer Crypto Custody Without Pre-Approval: OCC

OCC Clears Regulatory Path for Banks to Enter Crypto Services

National banks and federal savings associations in the United States can now offer cryptocurrency custody and stablecoin services without requiring prior approval from regulators, according to new guidance issued by the Office of the Comptroller of the Currency (OCC). The announcement, outlined in Interpretive Letter 1183, confirms that banks can engage in these activities under existing banking laws, eliminating a previous requirement to seek supervisory nonobjection before offering crypto-related services. This shift significantly lowers regulatory barriers for traditional financial institutions looking to expand into digital asset custody and stablecoin-related services.

OCC Acting Comptroller Rodney E. Hood emphasized that banks must uphold rigorous risk management practices akin to those applied in conventional banking operations. He underscored that the agency expects financial institutions to maintain the same level of oversight when handling digital assets as they do with traditional banking products. The move, Hood noted, not only streamlines the process for banks to engage with crypto but also ensures consistency in regulatory treatment, regardless of the underlying technology. The decision marks a notable shift in how federal regulators approach digital asset services within the banking sector.

Alongside the new guidance, the OCC has also rescinded its participation in previous joint regulatory statements that warned banks about the risks associated with crypto assets, including liquidity concerns and market volatility. This withdrawal signals a broader effort to integrate digital asset activities into the U.S. banking system within an established regulatory framework. 

By rolling back prior cautionary statements and removing additional oversight requirements, the OCC is setting the stage for banks to engage in crypto-related services without facing additional compliance hurdles beyond standard banking regulations. The latest update reflects a growing regulatory acknowledgment that digital assets are becoming an integral part of the financial landscape, with traditional banks expected to play a key role in their adoption.

This article has been refined and enhanced by ChatGPT.