By Key Points
- US Banks Crypto Rules Change Opens Door for Digital Assets
- The OCC now permits banks to offer crypto custody and stablecoin services without prior approval.
- Banks must implement strong risk management controls despite the eased restrictions.
- Crypto industry leaders welcome the move, but regulatory hurdles remain.
- The Fed and FDIC’s anti-crypto stance still poses challenges to full adoption.
The Office of the Comptroller of the Currency (OCC) has issued new guidance allowing national banks and federal savings associations to offer cryptocurrency custody and stablecoin services without needing prior regulatory approval.
This policy shift, outlined in Interpretive Letter 1183, streamlines the process for banks to integrate digital assets, marking a major win for the crypto industry. Previously, banks had to seek supervisory non-objection before engaging in these activities, which slowed adoption.
Let’s go!
Banks using USDC. Coming soon to a blockchain near you.
We are excited about wiring up the existing financial system to the new internet financial system.
Circle Mint is open for business. https://t.co/40uDpzzbK5
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) March 7, 2025
However, while the OCC is relaxing restrictions, it maintains that banks must apply the same rigorous risk management measures used for traditional banking operations. Acting Comptroller Rodney E. Hood emphasized this requirement, stating that the OCC expects banks to maintain strong controls over novel financial services.
This decision follows increasing pressure from the crypto industry to ease restrictive policies. Coinbase CEO Brian Armstrong has been particularly vocal, even filing a lawsuit against the FDIC over its alleged efforts to limit banking relationships with crypto firms.
Crypto industry leaders have celebrated the OCC’s move. Circle CEO Jeremy Allaire expressed excitement, hinting at a future where banks actively use USDC stablecoins. Similarly, well-known crypto analyst Scott Melker welcomed the decision, highlighting its potential to integrate crypto into mainstream finance.
BREAKING: The Office of the Comptroller of the Currency (OCC) just reaffirmed that crypto activities are fully permissible in the U.S. federal banking system.
The green light is getting brighter.
— The Wolf Of All Streets (@scottmelker) March 7, 2025
Bank of America (BoA) has already hinted at launching a stablecoin once US regulations allow. With this new development, BoA could join other financial giants like Ripple, which is already active in the stablecoin space.
Crypto’s Growing Role in Traditional Banking
The OCC’s decision is a reflection of the increasing institutional interest in digital assets. Over the past few years, major banks and financial institutions have slowly warmed up to cryptocurrencies, recognizing their potential in payments, investments, and cross-border transactions.
Big banks like JPMorgan have already experimented with blockchain technology, launching their own digital asset, JPM Coin, for cross-border payments. Goldman Sachs has also ventured into crypto trading, offering Bitcoin and Ethereum products to institutional investors.
With this latest OCC ruling, more traditional banks may explore custody services for Bitcoin, Ethereum, and stablecoins. This could lead to greater integration between crypto and traditional finance, making it easier for retail and institutional clients to manage their digital assets within bank accounts.
However, even with regulatory approval, banks will need to invest heavily in security and compliance measures to mitigate risks associated with digital asset custody. Cybersecurity, fraud prevention, and anti-money laundering (AML) controls will be crucial in ensuring the safety of customers’ crypto holdings.
Regulatory Hurdles Still Remain
Despite the excitement, not everyone is convinced this marks a complete green light for crypto in banking. Custodia Bank CEO Caitlin Long pointed out that the Federal Reserve (Fed) and the FDIC still have anti-crypto policies in place, which could limit the full impact of the OCC’s decision.
AMID ALL THE JUBILATION ABOUT the OCC news, #OperationChokePoint2.0 isn’t over until:
1. Fed & FDIC also rescind their anti-#crypto guidance, which is still in effect (Fed & FDIC were far more detrimental to crypto banking than OCC) &
2. @custodiabank has its Fed master account. https://t.co/KjhxLk54aw— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) March 7, 2025
Long, a longtime advocate for crypto banking, stated:
“Wish it were so, but we’re not quite there yet. There are nuances to US bank regulation.”
She explained that as long as the Fed and FDIC do not update their stance, Operation Choke Point 2.0—a term used to describe regulatory pressure against crypto-friendly banks—remains in effect.
Long highlighted how Custodia Bank was previously denied a Fed master account, preventing it from fully integrating with the traditional banking system.
However, Ben El-Baz, a founding member of HashKey Group, suggested that the OCC’s decision might push the Fed and FDIC to follow suit. He remains optimistic that this could set off a broader shift in US financial regulation, paving the way for greater crypto adoption.
On a more optimistic note, it is possible that the OCC as a first mover helps push along subsequent aligned guidance from FDIC and the Fed. Having one institution move forward is better than none!
— Baz (@ben_el_baz) March 8, 2025
While this policy update is a step forward, the crypto industry will need to wait and see whether other regulators follow the OCC’s lead. Until then, banks may tread cautiously in expanding their crypto-related offerings.
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