OCC Allows Banks to Engage in Crypto Without Prior Approval

The U.S. Office of the Comptroller of the Currency (OCC) has taken a major step in changing how banks interact with cryptocurrency. In a statement released Friday, the OCC confirmed that national banks can now participate in certain crypto-related activities without needing prior approval from regulators.

This marks a shift from previous policies, particularly those under the Biden administration, which required banks to get clearance from supervisors before engaging in crypto activities. The newly issued Interpretive Letter 1183 states that banks are allowed to offer crypto-asset custody, conduct some stablecoin-related transactions, and participate in distributed ledger networks without first getting a regulatory sign-off.

Acting Comptroller of the Currency Rodney Hood stressed that while banks now have more freedom, they must still have solid risk management measures in place.

“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,” Hood said . “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.”

Alongside this clarification, the OCC has rescinded earlier guidance that required banks to prove they had sufficient risk controls before offering digital asset services. The agency also withdrew from past joint statements with other U.S. regulators that had warned about the risks of banking with cryptocurrencies. 

One such statement from 2023 highlighted the sector’s “significant volatility” and warned that banks engaging in crypto would face close scrutiny.

The timing of the announcement is no coincidence. It came on the same day as a crypto summit at the White House and just hours after President Donald Trump signed an executive order to create a strategic reserve for Bitcoin and other major cryptocurrencies. This shift signals a more welcoming stance toward digital assets in the U.S. financial system, making it easier for banks to enter the crypto space.

The Office of the Comptroller of the Currency recently lifted prior limits, granting national banks broader entry into cryptocurrency. The Office of the Comptroller of the Currency just rolled back some old rules, giving national banks the green light to jump into cryptocurrency in a bigger way. 

This could mean digital cash starts showing up more in the banking we all use. But banks aren’t rushing in blind—they’ve got to keep their guard up, setting up strong protections against the ups and downs of this crazy market.