The OCC confirms: Banks can hold and operate cryptocurrencies in the US.

The Office of the Comptroller of the Currency (OCC) has issued historic guidance confirming that national banks in the United States can hold and operate cryptocurrencies and stablecoins without prior approval. This regulatory change redefines the relationship between traditional banking and the digital ecosystem, promoting innovation and financial security.

The OCC, the body responsible for regulating and supervising national banks and federally funded savings and loan associations in the United States, has issued new regulatory guidance that removes key barriers to these institutions operating cryptocurrencies and stablecoins formally and securely. 

The announcement, materialized in the Interpretative Letter 1184 on May 7 This year, it not only facilitates the adoption of digital assets by banks and consumers, but also strengthens user confidence and protection in the crypto market.

Until now, banks were required to notify and obtain approval from supervisors before venturing into cryptocurrency-related activities, a process that stifled innovation and competition. However, with this new guideline, The OCC recognizes the maturity of the sector and the ability of banks to manage these assets. under strict risk controls and regulatory compliance, opening the door to closer collaboration between traditional banking and the fintech world.

The OCC's New Guidance: A Paradigm Shift for Banking and Cryptocurrencies

La Interpretative Letter 1184 The OCC's ruling represents a fundamental shift in how national banks can interact with cryptocurrencies. 

Until recently, these entities were required to provide written notice of their intention to engage in crypto activities and await regulatory approval before proceeding. This process, known as "supervisory no-objection," involved a thorough review of the entity's risk management systems, internal controls, and technical capabilities, effectively discouraging many institutions from exploring the digital market.

Now, the new guidance eliminates this requirement, allowing banks to custodian, buy, sell, and trade cryptocurrencies and stablecoins directly, always under the supervision and responsibility of the institution. 

“The OCC recently issued Interpretive Letter 1183, which reaffirms Interpretive Letter 1170. Interpretive Letter 1170 addressed banks’ authority to provide custody services for crypto assets,” highlighted the OCC.

In addition, the OCC authorizes the outsourcing of these services to specialized third parties, provided the bank maintains control and oversight of the processes. By doing so, the agency is providing the flexibility needed to allow banks to adapt to market demands without regulatory delays, driving innovation and competitiveness in the financial sector.

Rodney Hood, OCC Acting Comptroller, emphasized the importance of maintaining high standards of security and oversight while facilitating the adoption of these technologies, aiming to strike a balance between innovation and consumer protection.

Custody and Subcontracting: New Opportunities and Responsibilities

According to the Interpretative Letter in question, banks may hold their clients' cryptocurrencies in custody, either internally or by outsourcing them to specialized third-party providers. The guidance facilitates the inclusion of blockchain technology in banking, allowing institutions to offer crypto services even if they do not have their own infrastructure for the secure management of these digital assets.

However, the OCC emphasizes that the ultimate responsibility always rests with the bank, which must ensure that third-party providers meet the same security, auditing, and regulatory compliance standards required internally. 

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Crypto-banking integration

The OCC's regulatory opening to the crypto world opens up a range of opportunities for collaboration between traditional banks and technology companies specializing in cryptocurrencies. Banks can now offer innovative products, which can boost the market and expand financial inclusion.

However, integration also presents significant challenges, considering the volatility of cryptocurrencies, technological complexity, and cyber threats, which require ongoing investments in security and staff training. 

Despite this, the OCC's decision to allow national banks in the United States to operate with cryptocurrencies and stablecoins without prior approval marks a turning point in the relationship between traditional banking and the digital ecosystem. This guidance reinforces the agency's view of the need to advance the normalization of digital assets in the US banking system. 

Overall, this change promotes innovation, competitiveness, and financial security, while protecting consumer interests and strengthening confidence in the banking system. With the publication of this guide, the integration of cryptocurrencies into the real economy is no longer a remote possibility, but a regulatory and operational reality in the United States.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.