The Acting Comptroller of the Currency gave a green light for banks to offer specific crypto-related services.
Banks received a major green light from a key U.S. banking regulator. On Tuesday, April 22, the Office of the Comptroller of the Currency clarified its stance on crypto services. Specifically, Acting Comptroller of the Currency Rodney Hood stated that banks are permitted to engage in certain crypto-related activities.
“Digital assets are firmly engrained in financial services landscape. Today, more than 50 million people own cryptocurrency, and hundreds of businesses engage in cryptocurrency and require banking services,” Rodney Hood, OCC
Hood emphasized that U.S. banks are “well-positioned” to provide services for crypto firms, provided they operate within existing regulatory frameworks. As such, the OCC confirmed that banks are legally allowed to offer specific crypto-related services.
Banks have to apply risk management for crypto: OCC
According to the OCC, banks can legally offer crypto custody, hold deposits as reserves for stablecoins, and use blockchain and stablecoins for payment processing. However, the regulator also noted that all applicable bank regulations related to risk management still apply.
“This action reduces regulatory burden, encourages responsible innovation and enables banks to leverage new technology and innovative ways to serve their customers,” Rodney Hood, OCC
OCC’s statements come at a time when several banks are actively expanding into the U.S. crypto market. On April 21, reports suggested that Deutsche Bank and Standard Chartered are actively looking for ways to expand their crypto operations in the U.S.
At the same time, major crypto firms are actively considering obtaining banking licenses in the U.S. This includes BitGo, Circle, Coinbase, and Paxos. The new push comes after Donald Trump’s election fundamentally changed the landscape of crypto regulation in the U.S.
As late as 2024, crypto firms suffered a debanking crisis in the U.S. Specifically, major banks were reluctant to offer services to entities related to the industry, fearing regulatory risks.
Source link