The U.S. Office of the Comptroller of the Currency (OCC) has updated its regulatory framework to allow national banks to hold cryptocurrencies, operate stablecoins, and participate in blockchain networks without prior approval. The measure seeks to balance innovation and risk control.
The OCC, the US banking regulator, has modified its stance on financial institutions' participation in cryptocurrency-related activities. Through Interpretive Letter 1183, the agency eliminated the requirement to "no supervisory objection", a process that required banks to request explicit authorization before offering services linked to digital assets.
Now, following this decision, banks can offer certain services related to cryptocurrencies and digital assets without the need to seek prior authorization from the OCC.
LINK CARD AND EARNThis initiative comes at a time of growing institutional adoption of cryptocurrencies, but tensions between innovation and regulation persist. The measure allows banks to offer various cryptocurrency services as long as they meet risk management standards equivalent to those of traditional services.
Towards greater integration of cryptocurrencies into traditional banking
The OCC specified that national banks and federal savings associations no longer need to seek prior approval for three key activities, Custody of crypto assets, management of stablecoins linked to fiat currencies, and participation in networks of independent nodes, such as validating transactions on the blockchain.. According to letterThese activities are permitted under U.S. Banking Law, provided banks maintain robust risk controls, periodic audits, and contingency plans.
A notable change is the elimination of the 2023 Liquidity Risk Statement, in which the OCC warned of potential threats to financial stability due to exposure to digital assets. Rodney Hood, the OCC's acting comptroller, repealed Regulation 1179, thus eliminating the requirement for banks to seek prior authorization.
The banking industry opens the doors to cryptocurrencies
One of the most relevant aspects of this new regulation is the elimination of the need to obtain a "letter of no objection" to participate in cryptocurrency activities. Previously, banks wishing to offer digital asset custody services or participate in stablecoin-related activities had to apply for this letter, a lengthy and costly process.
TRADE WITH STABLECOINSThe "no-objection letter" required the banks to submit a detailed application, including operational plans, risk controls, and regulatory compliance measures. The OCC reviewed these plans and issued an opinion on their adequacy. If the letter was rejected, the banks were required to modify their proposals or withdraw from the initiative.
With the elimination of this requirement, Banks can operate with greater flexibility and speed, which fosters innovation and competition in the financial sector. However, it's important to note that the OCC maintains its oversight to ensure that cryptocurrency-related activities are conducted safely and responsibly.
Cryptocurrencies are changing the game in the United States
In conclusion, the OCC's regulatory update marks a turning point in the relationship between traditional banking and cryptocurrencies in the United States. By eliminating red tape, the agency recognizes the maturity of technologies like blockchain and stablecoins, but makes it clear that innovation must coexist with strict controls.
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The real impact will depend on how other agencies align their policies and whether banks manage to mitigate operational and reputational risks.
Meanwhile, the crypto industry continues to move toward deeper integration with the global financial system, albeit with regulatory hurdles that still require attention.
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.
