OCC Eases Crypto Rules Sparking Bank Stock Surge
1min read The Office of the Comptroller of the Currency (OCC) has recently eased its regulatory stance on how banks can engage with cryptocurrency activities. This shift comes in the wake of former President Donald Trump's pledge to terminate Operation Chokepoint 2.0, a program that had been criticized for its restrictive approach to financial services for certain industries, including cryptocurrency.
In a significant move, the OCC issued an interpretative letter that clarifies the permissibility of various cryptocurrency activities within the federal banking system. These activities include crypto asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledgers. The letter also removes the requirement for institutions to obtain a no-objection opinion from regulators before engaging in these activities, provided they implement adequate risk management controls.
Acting Comptroller of the Currency Rodney E. Hood emphasized that the OCC expects banks to maintain strong risk management controls for new types of banking activities, similar to those used for traditional banking. This action aims to reduce the regulatory burden on banks while ensuring consistent treatment of cryptocurrency-related activities, regardless of the underlying technology.
Trump's administration has outlined plans to establish strategic Bitcoin reserves and digital asset inventories, aiming to position the U.S. as a leader in the cryptocurrency field. Treasury Secretary Scott Bessant highlighted the need for a federal framework for stablecoins and criticized former President Joe Biden’s policies for causing undue harm to digital asset innovators. The Treasury Department will work with the IRS and the OCC to revoke and modify guidance that has hindered the growth of digital asset companies in the U.S.
Bessant also mentioned the importance of stablecoin legislation, stating that clear rules would help preserve the dollar’s status as the world’s reserve currency. Trump himself expressed confidence that the House and Senate would pass stablecoin legislation before the August recess, indicating a bipartisan effort to regulate stablecoins.
While the industry has welcomed the OCC’s recent letter, some industry leaders, such as Custodia Bank founder and CEO Caitlin Long, have noted that Operation Chokepoint 2.0 “isn’t over” until the US Federal Reserve and the Federal Deposit Insurance Corporation also rescind their “anti-crypto guidance.”
Operation Chokepoint 2.0 had a significant impact on the industry, widely affecting multiple countries and 