OCC Says Banks Can Engage in Crypto Custody and Certain Stablecoin Activities

Federally regulated banks can engage in a range of cryptocurrency activities without prior approval, The Office of the Comptroller of the Currency (OCC) said, in a new interpretive letter and statement.

In a new interpretive letter, the OCC clarified that national banks and federal savings associations can legally provide crypto custody, conduct certain stablecoin-related activities, and run nodes.

“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.

“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.”

As part of this new interpretive letter, the OCC withdrew a statement it made in 2023 on liquidity risks for banks from crypto, suggesting a rollback of prior concerns about the industry’s impact on financial stability.