OCC Eases Crypto Banking Rules as Trump Vows to End Chokepoint 2.0 Crypto Stocks Surge

The Office of the Comptroller of the Currency (OCC) has announced new guidelines allowing national banks and federal savings associations to engage in various cryptocurrency activities. This move comes shortly after former U.S. President Donald Trump pledged to end Operation Chokepoint 2.0, a controversial initiative that had restricted crypto firms' access to banking services.

The OCC's new guidelines, outlined in a March 7 statement, permit banks to participate in crypto-asset custody, certain stablecoin activities, and independent node verification networks, such as distributed ledger technology. This shift is intended to reduce the regulatory burden on banks and ensure consistent treatment of crypto-related activities by the OCC. Acting Comptroller of the Currency Rodney E. Hood stated that the new guidance aims to encourage responsible innovation and enhance transparency within the banking sector.

Trump's announcement to end Operation Chokepoint 2.0 was made during the White House Crypto Summit on March 7. He criticized the operation for strong-arming banks into closing crypto businesses, which effectively blocked money transfers to and from exchanges. Trump's remarks highlighted the significant impact of Operation Chokepoint 2.0 on the industry, which had been a major concern for advocacy groups during the 2024 United States election.

Many crypto firms had turned to stablecoins to finance their operations after losing their business accounts at traditional banking institutions during the debanking operation. The OCC's new guidelines are expected to provide a more supportive regulatory environment for banks to engage with cryptocurrency, potentially reversing some of the negative effects of Operation Chokepoint 2.0.

Senator Cynthia Lummis of Wyoming had previously raised concerns about the destruction of documents related to Operation Chokepoint 2.0, alleging that whistleblowers had informed her of such actions. This further underscored the contentious nature of the operation and the need for greater transparency and accountability in regulatory practices.

The OCC's decision to ease regulations on crypto banking activities is a significant step towards fostering innovation in the financial sector. By providing clearer guidelines and reducing the regulatory burden, the OCC aims to create a more supportive environment for banks to engage with cryptocurrency, potentially driving growth and innovation in the industry. This move is expected to have a positive impact on the crypto sector, which has long struggled with regulatory uncertainty and access to banking services.