OCC confirms banks can offer crypto custody without prior approval

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Key Takeaways

The OCC confirms that national banks can provide crypto custody and stablecoin services without prior approval.
Banks must implement robust risk management controls equivalent to traditional banking operations when engaging in crypto activities.

The Office of the Comptroller of the Currency (OCC) has clarified that national banks can now offer crypto custody and stablecoin services without prior regulatory approval.

The agency’s latest guidance, Interpretive Letter 1183, confirms that banks and federal savings associations can engage in these activities under existing banking laws.

The guidance eliminates a previous requirement for OCC-supervised institutions to obtain supervisory nonobjection before engaging in crypto-related activities.

Banks must maintain robust risk management controls, similar to those required for traditional banking operations.

“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.

Hood added that the decision reduces the burden on banks to engage in crypto-related activities and ensures that the OCC treats these activities consistently, regardless of the underlying technology.

The agency has also withdrawn from previous joint regulatory statements concerning crypto-asset risks and liquidity risks in crypto markets, which had warned banks about potential volatility and operational issues in the sector.

The regulatory update suggests a broader initiative to incorporate crypto activities into the federal banking system under established regulatory frameworks.