U.S. Currency Comptroller's Office: Banks are allowed to conduct asset custody of encryption without prior approval

According to CoinDesk, the Office of the Comptroller of the Currency (OCC) in the United States stated in a new interpretive letter and statement that federally regulated banks do not need prior approval to engage in a range of Crypto Assets activities.

In a new interpretive letter, the OCC clarified that national banks and federal savings associations may lawfully provide Crypto Assets custody, engage in certain activities related to stablecoins, and operate nodes.

Acting Comptroller of the Currency, Rodney E. Hood, stated, “The OCC wants banks to apply the same robust risk management controls to support new banking activities as they do to traditional banking activities.”

Today's actions will reduce the burden on banks participating in encryption-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 Office of the Comptroller of the Currency withdrew its statement on the liquidity risk of Cryptocurrency to banks in 2023, indicating that its previous concerns about the industry's impact on financial stability have subsided.