OCC clarifies banks’ rights to engage in certain cryptocurrency activities

The Office of the Comptroller of the Currency (OCC) issued an interpretive letter reaffirming that a range of cryptocurrency activities are permitted in the federal banking system, confirming that national banks and federal savings associations can engage in crypto asset custody, certain stablecoin activities, and participate in independent node verification networks such as distributed ledgers. The letter also revoked the requirement that institutions regulated by the OCC must obtain a no-objection from regulators and demonstrate that they have implemented adequate controls before engaging in these cryptocurrency activities.

"The OCC expects banks to implement the same strong risk management controls to support new banking activities as they do for traditional banks," said Rodney E. Hood, Acting Comptroller of the Currency. "Today's action will reduce the burden on banks to engage in crypto-related activities and ensure that the OCC treats these banking activities consistently, regardless of the underlying technology. I will continue to work to ensure that regulation is effective and not excessive, while maintaining a strong federal banking system."