The U.S. Office of the Comptroller of the Currency (OCC) has relaxed cryptocurrency regulations to allow banks to participate without prior approval

The post OCC Relaxes Crypto Regulation, Allowing Banks to Participate Without Prior Approval first appeared on Coinpedia Fintech News.

Federally regulated banks can now engage in a variety of cryptocurrency activities without prior approval, the U.S. national banking regulator clarified on Friday.

In its new interpretive letter, the Office of the Comptroller of the Currency clarified that national banks and federal savings associations are allowed to provide cryptocurrency custody services, handle certain stablecoin activities, and operate nodes.

“The OCC expects banks to support new types of banking with the same strong risk management controls as they do in traditional banking,” said Rodney E. Hood, acting director of the OCC.

The firm said the decision will reduce pressure on banks involved in crypto activities and ensure that the OCC treats these activities consistently regardless of the technology used.

On Friday, the OCC withdrew guidance issued during President Biden’s administration that imposed additional requirements on banks that wanted to engage in certain cryptocurrency activities. The previous letter required banks to brief their supervisors in advance on cryptocurrency activities, explain how they would manage risks, and obtain approval before conducting cryptocurrency activities.

The Office of the Comptroller of the Currency also removed a joint statement from U.S. regulators warning banks not to get involved in the cryptocurrency space. A 2023 statement did not ban cryptocurrency businesses, but warned that the industry is extremely volatile and any cryptocurrency-related activities by banks will be closely scrutinized.

The news came on the same day as a cryptocurrency summit at the White House and just hours after President Trump signed an executive order to establish a strategic reserve for Bitcoin and other cryptocurrencies.