OCC’s New Guidance Marks Shift In U.S. Crypto Banking Regulations #CriptoNews

Coinciding with the first-ever White House Crypto Summit, the Office of the Comptroller of the Currency released a series of interpretive letters signaling a tangible shift in U.S. regulatory attitudes toward digital assets.

For years the American banking system has been hostile to crypto, often denying services to blockchain-based businesses altogether and earning the nickname “Operation Chokepoint 2.0”.

Now, the OCC’s latest guidance removes key barriers, enabling national banks to engage more freely with digital assets while maintaining robust risk management frameworks.

OCC Embraces Innovation, Eases Crypto Rules Under New Leadership

The OCC is an independent entity within the U.S. Department of the Treasury. It regulates and supervises national banks, ensuring they operate safely and fairly.

Historically, the OCC has been cautious about allowing banks to engage in cryptocurrency-related activities, requiring additional approvals and imposing heightened scrutiny. However, under the leadership of Acting Comptroller Rodney E. Hood, appointed in early 2025, the OCC is now adopting a more innovation-friendly approach, aligning with broader efforts to integrate digital assets into the mainstream economy.

OCC Greenlights Crypto Services for Banks

On March 7, 2025, the OCC officially declared that banks can now provide cryptocurrency-related services, including custody, stablecoin reserves, and blockchain participation, without requiring special approval.

This rescinds prior restrictive guidance from the Biden administration, which mandated that banks preemptively consult with regulators before engaging in crypto activities.

In effect, the OCC’s new stance treats crypto services as part of traditional banking, eliminating the extra regulatory hurdles that previously deterred financial institutions from entering the space.

“Digital assets should and need to be a part of the American economy,” said Rodney E. Hood, Acting Comptroller of the Currency. “I’m committed to developing a regulatory framework for digital assets to foster innovation while maintaining the safety, soundness, and fairness of the federal banking system.”

OCC Empowers Banks to Engage Freely with Digital Assets

The new interpretive letters overturn Interpretive Letter 1179 from 2021, which imposed strict oversight requirements on banks seeking to engage in crypto-related activities.

Under the revised policy, national banks are now authorized to provide cryptocurrency custody services for clients, ensuring the secure storage and management of private keys.

They are also permitted to hold stablecoin reserves, specifically for stablecoins backed one-to-one by U.S. dollars.

This confirms that banks can maintain these reserves if they ensure the funds match the number of stablecoins issued. Furthermore, banks can participate in blockchain networks by acting as nodes to validate transactions, strengthening their ability to support decentralized finance operations.

U.S. Promotes Blockchain Integration in Banking

The OCC’s decision underscores its growing confidence in banks’ ability to manage crypto-related risks and the broader push to integrate blockchain technology into the U.S. financial system.

The agency indicated that the previous heightened scrutiny was no longer necessary, given the industry’s maturation and the development of stronger risk management practices.

This regulatory shift arrives just as President Trump reaffirmed his commitment to ending policies that allegedly sought to exclude crypto businesses from banking services.

“Last year, I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet, and we’re taking historic action to deliver on that promise,” Trump said at the White House Crypto Summit.

Banking on Digital Assets

While the OCC’s move represents a significant win for the digital asset industry, challenges remain. The Federal Reserve and the Federal Deposit Insurance Corporation have yet to clarify their positions on crypto banking, and federal agencies may still impose restrictions through alternative regulatory channels.

Nonetheless, the OCC’s latest guidance marks a turning point, signaling that the U.S. financial system is finally opening its doors to digital assets.

By streamlining regulatory approvals and recognizing digital assets as legitimate financial instruments, the OCC is laying the groundwork for broader crypto adoption.

Banks now have the regulatory clarity to engage with blockchain technology and provide services that meet the evolving demands of the modern economy.