The Office of the Comptroller of the Currency has eased restrictions on how U.S. banks can engage with cryptocurrency and stablecoins.
The federal banking regulator announced that financial institutions now have permission to manage crypto assets. They can also participate in stablecoin activities and node verification networks without special pre-approval.
The OCC has eliminated a requirement that previously forced banks to meet specific conditions before engaging in crypto-related activities. This marks a significant shift from earlier policies.
"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," said Acting Comptroller of the Currency Rodney E. Hood.
The regulatory change reduces administrative burdens for financial institutions interested in cryptocurrency operations. Banks will still need to demonstrate appropriate risk controls.
"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," Hood explained. "I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system."
This policy reverses a directive issued during the Biden Administration. That previous directive, now rescinded, had required U.S. banks to obtain explicit regulatory clearance before legally participating in cryptocurrency activities.
The original letter had specified that banks needed to "demonstrate, to the satisfaction of its supervisory office, that it has controls in place to conduct the activity in a safe and sound manner."