The Office of the Comptroller of the Currency (OCC) has cleared the way for US banks to engage in certain crypto-related activities without requiring prior regulatory approval, according to Reuters.
The decision marks a significant shift in oversight, rescinding previous guidance that required banks to seek clearance before offering services such as crypto custody, stablecoin activities, and participation in distributed ledger networks.
The move comes amid growing discussions on the role of digital assets in the financial system. On the same day, the White House hosted a crypto summit, and President Donald Trump signed an executive order establishing a strategic reserve for bitcoin and selected cryptocurrencies.
The OCC’s announcement aligns with broader efforts to streamline regulations and reduce bureaucratic hurdles for financial institutions.
OCC Removes Pre-clearance Requirements for Banks
The OCC’s revised stance eliminates previous expectations that banks must obtain regulatory approval before engaging in crypto-related activities. This reverses guidance issued during the Biden administration, which required banks to demonstrate risk management protocols and seek explicit approval before offering crypto services.
According to the OCC, the decision ensures that banks remain responsible for risk management, regardless of the technology they use. Rodney Hood, acting comptroller, stated that the updated guidance removes unnecessary burdens while maintaining a consistent regulatory framework.
The OCC also withdrew from joint regulatory statements that had previously cautioned banks against digital asset involvement.
One such statement from 2023 did not prohibit banks from dealing in digital assets but warned of the market’s volatility and associated risks. The new approach emphasises banks’ autonomy in assessing crypto-related risks while complying with standard financial regulations.
Banking Sector Responds to Regulatory Shift
The OCC’s decision is expected to have a notable impact on the US banking sector, particularly among institutions that have been exploring crypto custody services and blockchain-based transactions. Banks previously required regulatory clearance before engaging in these activities, which some viewed as a regulatory bottleneck.
While some banks may now accelerate their crypto offerings, others remain cautious due to ongoing concerns about market volatility and compliance risks.
Industry experts note that despite the easing of restrictions, banks must still implement strong risk management controls to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
The announcement also aligns with broader government discussions on regulation. The White House’s summit, held on the same day, signals continued interest in shaping the future of digital asset regulation in the US financial system.
