New Crypto Era: U.S. Regulator Eases Banking Restrictions

In a significant policy shift, the U.S. Office of the Comptroller of the Currency (OCC) announced on Friday that national banks can engage in certain cryptocurrency-related activities without needing prior approval from regulators. These activities include crypto-asset custody, specific stablecoin operations, and participation in distributed ledger networks, reports Bloomberg. The OCC also rescinded previous guidance requiring banks to seek regulatory clearance before engaging in crypto activities, such as proving they had sufficient risk controls in place.

Acting Comptroller Rodney Hood emphasized that while banks must implement strong risk management frameworks, the new guidelines remove unnecessary burdens and ensure a consistent regulatory approach, regardless of the underlying technology. The announcement coincided with a White House crypto summit and followed President Donald Trump’s executive order establishing a strategic bitcoin reserve.

The move effectively overturns policies set under former President Joe Biden’s administration, which required banks to brief supervisors, outline risk management strategies, and obtain supervisory approval before engaging in crypto-related business. The OCC also withdrew from previous joint statements that had warned of crypto’s volatility and subjected bank participation to intense scrutiny. This regulatory shift is expected to streamline banking participation in the digital asset ecosystem, providing greater clarity and reducing operational barriers for financial institutions.