In a new move, the OCC published the interpretive Letter 1183.
This letter reaffirms that national banks and federal savings associations can engage in crypto-asset custody. Also, with stablecoin activities, and participation in distributed ledger networks.
OCC Clears the Path for Banks to Enter Crypto
Previously, banks had to jump through hoops to engage in these activities, requiring special approvals and proving they had adequate controls in place. But with this new action, the OCC has removed that extra red tape, making it easier for banks to step into the crypto space.
Acting Comptroller of the Currency Rodney E. Hood emphasized the importance of maintaining strong risk management. “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,” Hood stated. He also noted that this move ensures that crypto activities are treated fairly, no matter the underlying technology.
The OCC reaffirmed that crypto-asset custody, holding deposits that serve as reserves backing stablecoins, & the use of distributed ledger technology & stablecoins to facilitate permissible payments activities are permissible in the federal banking system. https://t.co/ifOdvjzEYJ pic.twitter.com/t7AXenXix3
— OCC (@USOCC) March 7, 2025
The OCC also withdrew from previous joint statements that warned banks about crypto-related risks. This change signals a shift in how the agency approaches cryptocurrency in the banking sector, making regulations clearer and more consistent.
Banks Get Green Light to Embrace Crypto
For banks looking to expand into crypto, this is a game-changer. Instead of being stuck waiting for approvals, they can now move forward with greater confidence. It’s a sign that crypto is no longer the wild west—it’s becoming a regular part of the financial landscape.
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
This decision could open doors for more traditional financial institutions to offer crypto services, providing greater security and trust for customers. It also gives banks a green light to innovate without unnecessary roadblocks.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post OCC Reaffirms Banks Can Engage in Crypto Activities appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.