- Federal regulators have updated guidelines, allowing banks to engage in crypto custody, stablecoin activities, and blockchain verification without prior supervisory nonobjection approval.
- Acting Comptroller Rodney E. Hood stressed banks must apply strong risk management controls, aligning digital asset services with traditional banking practices securely.
- Industry leaders from major financial sectors welcomed the update, stating it streamlines digital transformation and offers clear regulatory treatment for crypto operations.
US regulators have updated guidelines for banks regarding digital asset services. The Office of the Comptroller of the Currency’s new interpretive letter enables banks to offer crypto custody, stablecoin activities, and blockchain verification, marking a change in the federal banking system’s approach.
Regulatory Updates for Digital Asset Services
The interpretive letter rescinds the requirement for supervisory nonobjection before engaging in crypto activities. The agency stated the guidance was issued “to reaffirm that a range of cryptocurrency activities are permissible in the federal banking system.” This move clarifies permissible services for banks.
The Office of the Comptroller of the Currency Letter 1183 permits national banks and federal savings associations to offer crypto asset custody, stablecoin activities, and node verification networks. Banks now follow clear regulatory standards without extra pre-approval processes.
The revised guidance reflects a shift from prior federal policies. The Biden administration emphasized digital asset risks in previous industry statements. Meanwhile, some critics argued these policies led to “debanking” of individuals and companies in the crypto sector. The new approach integrates digital assets with established banking protocols.
Risk Management Standards
Acting Comptroller Rodney E. Hood stressed the importance of risk controls for digital services. He stated, “The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones.” The statement reinforces risk management parity.
The new guidance removes the need for prior supervisory approval for crypto operations. Financial institutions must continue to demonstrate adequate risk management controls under updated rules. Banks adjust internal policies to align with revised federal directives.
Banks are expected to update internal procedures to match digital asset operations. Federal guidelines require ongoing compliance reviews. These measures support stability in both digital and conventional banking sectors. Banks must continuously evaluate risk controls to ensure regulatory adherence.
Industry Reactions and Next Steps
A tweet from Bitcoin Magazine noted that the OCC confirms banks can engage in Bitcoin services like asset custody. The tweet provided real-time support for the updated federal guidance. Industry observers mention the clarity in digital asset regulation.
Acting Comptroller Hood stated, “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology. I will continue to work diligently to ensure regulations are effective and not excessive while maintaining a strong federal banking system.” Banks face a clear path to integrate digital assets with traditional systems.
The announcement coincided with a White House crypto summit and an executive order signed by former President Donald Trump. The order established a strategic reserve for Bitcoin and select cryptocurrencies. Such timing reflects ongoing attention to digital finance at multiple government levels. Regulatory bodies and market participants continue to monitor digital trends closely. Authorities remain vigilant.
