FILE PHOTO: Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
WASHINGTON (Reuters) -The U.S. regulator overseeing national banks clarified Friday that banks can engage in some crypto activities, and removed expectations firms should receive advance permission from regulators before doing so.
The Office of the Comptroller of the Currency said in a statement that national banks are permitted to engage in some crypto activities, such as crypto-asset custody, some stablecoin activities, and participation in distributed ledger networks.
The OCC also rescinded prior guidance telling banks they should clear crypto activities with regulators beforehand, including showing they have adequate controls in place for that business.
Rodney Hood, acting comptroller, said in a statement that the new guidance makes clear banks must have risk management in place regardless of technology. The announcement came on the same day the White House hosted a crypto summit, and hours after President Donald Trump signed an executive order establishing a strategic reserve for bitcoin and a handful of other cryptocurrencies.
“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 said in a statement.
Specifically, the OCC on Friday rescinded guidance for banks issued under former President Joe Biden's administration, which effectively set additional guardrails for banks seeking to engage in some crypto activities. The rescinded letters told banks they should brief their supervisors on crypto activities beforehand, show how they would handle risks, and ensure the supervisor had no objection.
The OCC also withdrew from joint statements previously issued by U.S. regulators effectively cautioning banks against engaging with crypto. One such statement, issued in 2023, did not prohibit banks from doing crypto business, but warned the sector is prone to "significant volatility" and said any bank activities would be closely scrutinized.
(Reporting by Pete Schroeder; Editing by Chris Reese and David Gregorio)
