WASHINGTON (Reuters) -The U.S. regulator overseeing nationwide banks clarified Friday that banks can have interaction in some crypto actions, and eliminated expectations companies ought to obtain advance permission from regulators earlier than doing so.
The Workplace of the Comptroller of the Forex stated in a press release that nationwide banks are permitted to have interaction in some crypto actions, equivalent to crypto-asset custody, some stablecoin actions, and participation in distributed ledger networks.
The OCC additionally rescinded prior steerage telling banks they need to clear crypto actions with regulators beforehand, together with displaying they’ve enough controls in place for that enterprise.
Rodney Hood, performing comptroller, stated in a press release that the brand new steerage makes clear banks will need to have threat administration in place no matter expertise. The announcement got here on the identical day the White Home hosted a crypto summit, and hours after President Donald Trump signed an govt order establishing a strategic reserve for bitcoin and a handful of different cryptocurrencies.
“As we speak’s motion will scale back the burden on banks to have interaction in crypto-related actions and make sure that these financial institution actions are handled constantly by the OCC, whatever the underlying expertise,” Hood stated in a press release.
Particularly, the OCC on Friday rescinded steerage for banks issued beneath former President Joe Biden’s administration, which successfully set extra guardrails for banks in search of to have interaction in some crypto actions. The rescinded letters informed banks they need to temporary their supervisors on crypto actions beforehand, present how they might deal with dangers, and make sure the supervisor had no objection.
The OCC additionally withdrew from joint statements beforehand issued by U.S. regulators successfully cautioning banks towards participating with crypto. One such assertion, issued in 2023, didn’t prohibit banks from doing crypto enterprise, however warned the sector is vulnerable to “important volatility” and stated any financial institution actions can be carefully scrutinized.
(Reporting by Pete Schroeder; Modifying by Chris Reese and David Gregorio)
