| Key Points: – The U.S. Office of the Comptroller of the Currency (OCC) now allows national banks to engage in crypto activities without prior regulatory approval. – The announcement coincided with a White House crypto summit and President Trump’s executive order establishing a strategic Bitcoin reserve. |
The U.S. Office of the Comptroller of the Currency (OCC) announced Friday that national banks are permitted to engage in certain crypto activities without requiring prior regulatory approval.
The policy change coincided with a White House crypto summit and came just hours after President Donald Trump signed an executive order establishing a strategic reserve for Bitcoin and select cryptocurrencies.
OCC Opens Doors for Banks to Engage in Crypto Activities
According to the OCC, banks can legally provide cryptocurrency custody, participate in stablecoin-related transactions, and operate distributed ledger nodes.
The regulator also rescinded earlier guidance, issued under the Biden administration, that required banks to seek clearance from supervisors before engaging in crypto activities. The previous rules mandated that institutions demonstrate adequate risk controls and obtain supervisory approval before offering crypto services.
Acting Comptroller Rodney Hood emphasized that while banks are free to engage with digital assets, they must maintain robust risk management frameworks.
“Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology,” Hood stated.
The rescinded guidance had originally been introduced as part of a broader regulatory framework under the Biden administration. A 2023 OCC statement on liquidity risks associated with crypto activities was also withdrawn, indicating a rollback of prior concerns about potential financial system vulnerabilities tied to digital assets.
Regulatory Barriers Ease as Operation Choke Point 2.0 Ends
The development follows President Trump’s commitments to ending “Operation Choke Point 2.0,” a term used to describe alleged efforts by federal regulators to restrict banking access for crypto firms.
Critics argue that the policy, which originated from an Obama-era initiative targeting high-risk industries, significantly hampered crypto businesses’ ability to access traditional financial services. Many firms resorted to using stablecoins for operational funding after losing their banking relationships.
The removal of Operation Chokepoint 2.0 signals a shift in policy and aligns with recent developments in the broader crypto regulatory landscape. Industry advocates have long pushed for clearer regulatory guidelines, arguing that restrictive banking policies stifled innovation and economic growth in the digital asset sector.
The OCC’s latest decision is expected to provide relief to crypto firms seeking greater integration with the banking system, though regulators have reiterated that financial institutions must remain vigilant against risks associated with digital assets.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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