US Regulators Ease Restrictions on Bank Crypto Activities

The OCC removes prior approval requirements, allowing banks to engage in crypto custody, stablecoin activities, and blockchain participation with proper risk controls.

• The Office of the Comptroller of the Currency (OCC) announced that federally regulated banks can engage in certain cryptocurrency activities without prior regulatory approval.
• Permitted activities include crypto-asset custody, stablecoin-related operations, and participation in distributed ledger networks.
• The new guidance rescinds previous rules requiring banks to clear crypto activities with regulators and demonstrate risk management plans in advance.
• Acting Comptroller Rodney Hood emphasized that banks must still maintain robust risk management controls for both traditional and crypto-related activities.
• This policy shift marks a rollback of stricter guidance issued during the Biden administration, which had cautioned against potential volatility and financial stability risks in the crypto sector.

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