In a landmark decision, the US Office of the Comptroller of the Currency (OCC) has cleared the way for national banks to engage in certain cryptocurrency activities. Published in the OCC’s Interpretive Letter 1183, dated 7 March 2025, the OCC reaffirms that a range of cryptocurrency activities are permissible in the federal banking system.
This decision allows banks to participate in crypto-asset custody, stablecoin issuance, and distributed ledger networks without needing prior approval. It marks a significant shift in the US regulatory landscape.
Also, the OCC has rescinded the requirement for OCC-supervised institutions to receive supervisory nonobjection and demonstrate that they have adequate controls in place before they can engage in these cryptocurrency activities.
The OCC’s announcement comes on the heels of a crypto summit hosted by the White House and President Donald Trump’s executive order establishing a strategic reserve for Bitcoin and other cryptocurrencies.
Read also: Trump establishes Strategic Bitcoin Reserve and US Digital Asset Stockpile
National banks must continue to take compliance seriously.
Acting Comptroller Rodney Hood emphasized that banks must still have robust risk management systems in place, regardless of the technology used.
The letter, signed by Acting Comptroller of the Currency Rodney E. Hood, reads: “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.”
In any activity, banks are required to “conduct all crypto-asset activities in a safe, sound, and fair manner and in compliance with applicable law.” Also, “new activities should be developed and implemented consistent with sound risk management practices and align with banks’ overall business plans and strategies.”
Emphasizing neutrality in regulation of new technologies, the letter states that “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. I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”
Read also: Banks can accept cryptocurrencies, says US Federal Reserve Chair
The OCC rescinds three interpretive letters, determining that they were no longer necessary.
In 2020 and 2021, the OCC issued three interpretative letters that maintained some level of restriction regarding national banks’ involvement in crypto activities. The interpretive letters are:
- OCC Interpretive Letter 1170 (July 22, 2020), addressing whether banks may provide crypto-asset custody services;
- OCC Interpretive Letter 1172 (September 21, 2020), addressing whether banks may hold dollar deposits serving as reserves backing stablecoins in certain circumstances; and
- OCC Interpretive Letter 1174 (January 4, 2021), addressing whether banks may (1) act as nodes on an independent node verification network (i.e., a distributed ledger) to verify customer payments and (2) engage in certain stablecoin activities to facilitate payment transactions on a distributed ledger.
According to the OCC, this “rescission is intended to reduce burden, encourage responsible innovation, and enhance transparency.”
Read also: US banking sector ready to adopt crypto if regulators permit it—Bank of America CEO
The crypto industry reacts positively; Significance for banks.
This move is seen as a positive step towards mainstream adoption of cryptocurrencies and is expected to encourage more banks to explore the crypto space in the US.
The crypto community has welcomed the news, with Coinbase’s Chief Legal Officer, Paul Grewal, stating that “regulatory clarity is long overdue”.
Also, this development is significant for banks and financial institutions worldwide, as it provides clarity on their ability to engage in crypto transactions.
Previously, banks were restricted from participating in crypto activities due to regulatory uncertainty. With this new guidance, banks can now explore the crypto space with confidence, paving the way for increased adoption and innovation in the industry.
Apparently, it may not be too early to observe that Donald Trump’s pro-crypto administration is keeping its promise to the crypto industry: Make the US “the crypto capital of the world”.
Read also: Trump establishes President‘s Working Group on Digital Asset Markets
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