EddieJayonCrypto
8 Mar 25
The Office of the Comptroller of the Currency (OCC) has issued new guidance, allowing national banks and federal savings associations to offer crypto custody and stablecoin services without prior regulatory approval. This marks a significant development for the cryptocurrency sector, streamlining th...
The Office of the Comptroller of the Currency (OCC) has issued new guidance, allowing national banks and federal savings associations to offer crypto custody and stablecoin services without prior regulatory approval. This marks a significant development for the cryptocurrency sector, streamlining the process for banks to integrate digital assets into their services. However, industry experts caution that broader regulatory obstacles remain, and some have urged caution despite the positive step. The decision has received mixed reactions from key players in the crypto industry, with some highlighting its economic impact and others emphasizing the need for broader regulatory changes. The latest directive, Interpretive Letter 1183, confirms that banks can engage in these activities under existing banking laws. This eliminates the previous requirement to obtain supervisory non-objection before proceeding. The new guidance streamlines the process for banks to integrate digital assets into their services. Nevertheless, the OCC emphasized that while the approval requirement has been lifted, banks must maintain strong risk management controls akin to those required for traditional banking operations. The decision has been welcomed by certain industry executives, while others have underscored the remaining regulatory obstacles and the need for broader regulatory changes. Custodia Bank CEO Caitlin Long pointed out that while the OCC’s guidance is a positive step, broader regulatory obstacles remain, highlighting that anti-crypto guidance from the Federal Reserve (Fed) and FDIC continues to create hurdles for banks wishing to fully adopt digital asset services. In contrast, Ben El-Baz, a founding member of HashKey Group, offered a more optimistic perspective, suggesting that the OCC’s decision could pressure the Fed and FDIC to follow suit. The OCC's decision marks a positive development, although it may take some time for banks to fully embrace these changes.