OCC Says Banks Can Engage in Crypto Custody and Certain Stablecoin Activities

Federally regulated banks can have interaction in a spread of cryptocurrency actions with out prior approval, The Office of the Comptroller of the Currency (OCC) mentioned, in a brand new interpretive letter and assertion.

In a brand new interpretive letter, the OCC clarified that nationwide banks and federal financial savings associations can legally present crypto custody, conduct sure stablecoin-related actions, and run nodes.

“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,” mentioned Acting Comptroller of the Currency Rodney E. Hood.

“Today’s motion will cut back the burden on banks to have interaction in crypto-related actions and be certain that these financial institution actions are handled constantly by the OCC, whatever the underlying expertise.”

As a part of this new interpretive letter, the OCC withdrew an announcement it made in 2023 on liquidity dangers for banks from crypto, suggesting a rollback of prior considerations concerning the business’s influence on monetary stability.