The Office of the Comptroller of the Currency (OCC) Allows Banks to Engage in Crypto Activities
The Office of the Comptroller of the Currency (OCC), the US regulatory body overseeing national banks, made a significant announcement on Friday regarding crypto activities. Here are the key points:
New Opportunities for National Banks
- National banks can now engage in crypto-asset custody services.
- They are permitted to undertake certain stablecoin operations.
- Banks can participate in distributed ledger networks and become validators on public Proof-of-Stake networks.
Regulatory Changes Under Biden Administration
Under the Biden administration, banks no longer need advance regulatory approval for crypto activities. Here’s what is required:
- Bank personnel must inform their supervisors about planned crypto activities.
- They need to demonstrate risk management strategies.
- Ensure there are no objections from supervisory bodies.
Reaction from Industry Experts
Industry experts are welcoming the OCC’s announcement:
“The OCC expects banks to have strong risk management controls in place to support novel bank activities as they do for traditional ones. Today’s action will reduce the burden on banks to engage in crypto-related activities,” said Acting Comptroller Rodney Hood.
Nic Carter, partner at Castle Island Ventures, and Alexander Grieve, VP of Government Affairs at Paradigm, also shared their positive reactions.
Future Implications
The OCC’s decision coincided with the White House Crypto Summit and President Trump’s executive order on strategic reserves for cryptocurrencies. However, there are still concerns about regulatory obstacles that need to be addressed.
Caitlin Long, founder of Custodia Bank and member of the Wyoming Blockchain Task Force, highlighted the need for further regulatory changes from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to fully support the crypto sector.
