New OCC Guidelines Allow Banks to Offer Crypto Custody and Stablecoin Services

• OCC has allowed banks to offer crypto custody and stablecoin services under new rules.
• Banks can now verify blockchain transactions and join decentralized finance activities.
• The OCC has removed past restrictions and given banks more freedom in crypto operations.

The Office of the Comptroller of the Currency has established a new official guidance that allows federally regulated banks to participate in cryptocurrency operations. This regulatory shift enables banks to offer cryptocurrency custody services and conduct stablecoin transactions while operating blockchain nodes.

Expanded Role of Banks in Crypto

The interpretive Letter 1183 establishes that national banks and federal savings associations maintain authority to provide crypto-asset custody services. This update will streamline banking operations for digital assets. Banks can also participate in certain stablecoin activities. This reinforces their role in the payment sector.

The guidance extends to decentralized finance (DeFi). Banks may now verify blockchain transactions independently. This strengthens their role in decentralized financial systems. Previously, banks needed licenses for these activities but the OCC has now removed this requirement.

Regulatory Shift and Market Impact

The OCC has withdrawn previous rules that required banks to prove adequate controls before engaging in crypto activities. This reduces compliance burdens and it also aligns digital asset management with traditional banking operations.

The OCC has also pulled back from earlier joint statements on crypto-asset and liquidity risks. This move distances the agency from the Federal Deposit Insurance Commission’s (FDIC) cautious approach to crypto regulations.

Political and Industry Reactions

The announcement follows promises made during the last presidential campaign. Former President Donald Trump pledged to remove regulatory barriers for crypto adoption. The White House Crypto Summit on March 7 reinforced the administration’s commitment to digital asset regulation.

Some industry leaders support the OCC’s decision. They see it as a step toward mainstream crypto adoption. Others express concerns over government involvement in decentralized finance. With major banks now directly purchasing Bitcoin through ETFs, competition in the crypto space may increase.

Despite these regulatory changes, the broader crypto market remains steady. Analysts believe the OCC’s guidance will provide long-term clarity. Banks now have more opportunities in digital asset management.