Activity

The Office of the Comptroller of the Currency (OCC) has been actively clarifying its stance on cryptocurrency activities for national banks and federal savings associations, with recent significant updates in March and May of 2025.
Here’s a breakdown of the key clarifications and the OCC’s current position:
Overall Shift: More Permissive Approach, Less Prior Scrutiny
The general trend from the OCC is towards a more permissive regulatory environment for banks engaging with crypto assets, while still emphasizing safe and sound practices. A crucial change is the removal of the requirement for banks to obtain a “supervisory non-objection” before engaging in certain crypto activities. This streamlines the process and reduces regulatory hurdles.
Key Interpretive Letters and Their Implications:
* Interpretive Letter 1183 (March 7, 2025): This is a very important letter as it rescinded Interpretive Letter 1179, which had previously required banks to seek the OCC’s written non-objection. IL 1183 reaffirmed the permissibility of a range of crypto-asset activities, including:
* Crypto-asset custody services: Banks can provide custody services for digital assets, including holding unique cryptographic keys. This builds on previous guidance (Interpretive Letter 1170, July 2020), which established that providing crypto custody is a modern form of traditional bank custody.
* Certain stablecoin activities: Banks can hold deposits serving as reserves backing stablecoins, particularly those backed 1:1 by a single fiat currency (as per Interpretive Letter 1172, September 2020). They can also engage in activities facilitating payment transactions on a distributed ledger using stablecoins.
* Participation in independent node verification networks (distributed ledgers): Banks can act as nodes to verify customer payments (as per Interpretive Letter 1174, January 2021).
* Interpretive Letter 1184 (May 7, 2025): This letter further clarified that banks may buy and sell assets held in custody at the customer’s direction and are permitted to outsource bank-permissible crypto-asset activities, including custody and execution services, to third parties, subject to appropriate third-party risk management.
Core Principles and Expectations:
Even with the more permissive stance, the OCC consistently emphasizes that banks must:
* Conduct all crypto-asset activities in a safe, sound, and fair manner.
* Comply with all applicable laws and regulations, including those related to anti-money laundering (AML), countering the financing of terrorism (CFT), and consumer protection.
* Implement strong risk management controls comparable to those used for traditional banking activities, considering the volatility and operational complexities of crypto assets. This includes robust KYC/CDD (Know Your Customer/Customer Due Diligence), operational risk management, and governance frameworks.
* Have adequate capital and liquidity to support their crypto-related operations.
Withdrawal from Joint Statements:
Consistent with Interpretive Letter 1183, the OCC also withdrew its participation in certain interagency statements on crypto-asset risks and liquidity risks, signaling a more independent and potentially streamlined approach to regulating these activities for national banks and federal savings associations.
In summary, the OCC is moving towards integrating responsible crypto activities into the regulated financial system, allowing banks greater flexibility while maintaining a strong focus on risk management and compliance. This contrasts with some earlier, more cautious stances and aims to reduce burdens and encourage responsible innovation.

Video courtesy of Eurex

Video courtesy of Eurex