Key dealers
- OCC confirms that national banks can provide crypto custody and Stablecoin services without prior approval.
- Banks must carry out robust risk management checks corresponding to traditional banking operations when participating in crypto activities.
The Office of the Currency Controller (OCC) has Clarified That national banks can now offer crypto custody and stablecoin services without prior approval.
The agency’s latest guidance, letter of interpretation 1183, confirms that banks and federal savings associations can participate in these activities according to existing banks.
The guidance eliminates an earlier requirement for OCC-monitored institutions to obtain supervisory assignments before participating in crypto-related activities.
The banks must maintain robust risk management controls, similar to those required for traditional banking operations.
“OCC expects banks to have the same strong risk management checks to support new banking activities as they do for traditional,” said acting checks on the currency Rodney E. Hood.
Hood added that the decision reduces the burden for the banks to participate in crypto-related activities and ensures that OCCT is consistently treating these activities, regardless of the underlying technology.
The agency has also withdrawn from previous joint regulatory statements on crypto access risks and liquidity risks in crypto markets, which had warned banks about potential volatility and operational issues in the sector.
The regulatory update proposes a broader initiative to integrate crypto activities into the federal banking system under established regulations.
