US OCC Allows Banks to Engage in Crypto Custody and Stablecoin Activities

The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidelines allowing banks to engage in certain cryptocurrency-related activities. Under these guidelines, banks can now provide cryptocurrency custody services, participate in certain stablecoin activities, and join distributed ledger networks without prior approval.

According to Reuters on the 7th (local time), the OCC stated in an announcement that "nationally chartered banks do not need prior regulatory approval to perform certain cryptocurrency activities."

Through this measure, the OCC has withdrawn regulatory guidelines on cryptocurrencies that were introduced during the Biden administration. Those guidelines required banks to report to supervisory authorities and submit risk management plans before starting cryptocurrency-related activities. The OCC has also withdrawn from joint regulatory warnings related to cryptocurrencies.

Acting Comptroller Rodney Hood said, "This measure aims to reduce unnecessary regulatory burdens on banks engaging in cryptocurrency-related activities," adding that "the principle that banks must maintain thorough risk management frameworks when conducting cryptocurrency business remains unchanged."