The Office of the Comptroller of the Currency (OCC) has issued new guidance allowing national banks and federal savings associations to engage in cryptocurrency-related activities without prior regulatory approval. This decision marks a significant step towards integrating cryptocurrencies into the traditional financial system.
New Opportunities for National Banks
The new OCC guidelines open the door for national banks to provide crypto custody services, conduct trades at customers' direction, and outsource digital asset services while adhering to established third-party risk management guidelines. The policy shift is supported by two vital interpretive letters that render previous non-objection practices obsolete.
Alignment with the Federal Reserve
These policy updates align with the Federal Reserve’s decision to retract its pre-approval guidance for crypto activities, reflecting a collaborative effort among federal regulators to enhance banking services related to cryptocurrencies. According to Acting Comptroller Rodney E. Hood, the U.S. banking system is now considered well-positioned to handle digital asset activities as long as operations remain safe and sound.
Banks Preparing to Enter the Crypto Market
With the path now clear, national banks are getting ready to launch crypto services, including custody for digital assets and settlements via stablecoins. These developments correspond with increasing customer demand for digital assets, with a survey indicating that around 55 million Americans own some form of cryptocurrency. Nevertheless, banks need to develop appropriate technologies and train their staff to address specific crypto-related risks such as cybersecurity and asset volatility.
The updated OCC rules signify a new era for national banks in the cryptocurrency industry, reflecting the trend towards digitalization in financial services and the growing consumer interest.
