WASHINGTON—The Office of the Comptroller of the Currency (OCC) reaffirmed that federally regulated banks can legally conduct a range of cryptocurrency activities, including crypto-asset custody, stablecoin services, and participation in distributed ledger networks. This decision, outlined in Interpretive Letter 1183, eliminates previous requirements for banks to seek supervisory approval, streamlining the process for OCC-supervised institutions to adopt these services.
Key Updates from the OCC
Permissible Activities:
- Crypto custody (holding digital assets on behalf of clients).
- Stablecoin-related services (issuance, redemption, and transaction facilitation).
- Independent node verification networks (e.g., validating blockchain transactions).
Regulatory Relief:
- Rescinds the need for a supervisory nonobjection before engagement.
- Banks must still implement risk management controls comparable to traditional services.
👉 Explore crypto banking compliance
Quotes from Leadership
"The OCC ensures novel technologies are integrated safely into banking. Today’s action reduces unnecessary hurdles while maintaining rigorous oversight."
— Acting Comptroller Rodney E. Hood
Additional Actions
- The OCC withdrew from two joint statements on crypto-asset risks and liquidity vulnerabilities, signaling a shift toward institution-specific risk assessments.
FAQs
Q: How does this affect banks offering crypto services?
A: Banks no longer need pre-approval but must demonstrate robust internal controls.
Q: Are stablecoin activities now fully legal?
A: Yes, if compliant with OCC’s risk management standards.
Q: What risks should banks consider?
A: Cybersecurity, volatility, and regulatory reporting.
👉 Learn about stablecoin regulations
Keywords: cryptocurrency activities, OCC, crypto-asset custody, stablecoin, distributed ledger, banking regulation, Interpretive Letter 1183
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