Regulators End Anchorage Digital Probe, Signal Crypto-Friendly Shift

The U.S. regulatory environment for digital assets is undergoing a significant transformation, with the Office of the Comptroller of the Currency (OCC) recently lifting a 2022 enforcement order against Anchorage Digital, a pioneering federally chartered crypto bank. The decision marks a shift in regulatory posture under the Trump administration, which has sought to foster innovation in the digital asset space. Anchorage Digital, the sole crypto bank with a federal charter, had previously faced regulatory scrutiny over its anti-money laundering (AML) and know-your-customer (KYC) protocols. The OCC announced the termination of the consent order on August 21, 2025, noting that the bank had successfully remediated compliance issues and demonstrated adherence to safety and soundness standards. This move has been celebrated by the bank’s CEO, Nathan McCauley, who emphasized Anchorage Digital’s role in setting regulatory benchmarks for the industry. The revocation of the enforcement order underscores the administration’s broader efforts to ease constraints on the crypto sector, signaling a more accommodating approach to digital asset banking.

This regulatory shift is part of a series of recent developments aimed at clarifying the legal framework for digital assets in the United States. In early March 2025, the OCC issued Interpretive Letter 1183, which rescinded prior requirements for banks to obtain regulatory approval for crypto-related activities such as custody, stablecoin issuance, and the use of distributed ledger technology. Similarly, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System withdrew earlier guidance that imposed strict pre-approval and reporting requirements for crypto activities. These actions align with the Trump administration’s goal of positioning the U.S. as a global leader in digital asset innovation. The administration’s approach has been supported by recent legislative developments, including the passage of the GENIUS Act in July 2025. The Act establishes clear rules for the issuance and oversight of stablecoins, mandating reserve requirements, monthly audits, and AML compliance. It also provides a federal pathway for non-bank entities to issue stablecoins, subject to regulatory oversight.

The regulatory environment for crypto has also been shaped by the Trump administration’s emphasis on fostering competition and innovation in the financial sector. The President’s Working Group on Digital Asset Markets (PWG) released a comprehensive report in July 2025, outlining recommendations for enhancing regulatory clarity and supporting the growth of digital assets. The report emphasized the importance of a technology-neutral regulatory approach and called for the removal of barriers that hindered state banks from engaging in digital asset activities. Among its key recommendations was the rescission of the Federal Reserve’s Policy Statement, which had created a rebuttable presumption against state member banks engaging in activities impermissible for national banks. The report also highlighted the need for streamlined processes for obtaining bank charters and Federal Reserve master accounts, ensuring that eligible entities are not discriminated against based on their involvement in digital assets. These recommendations reflect a broader effort to level the playing field between traditional financial institutions and emerging digital asset firms.

The regulatory changes have also sparked debate among traditional banking institutions and crypto advocates. While crypto firms view the shift as an opportunity to expand their market presence and innovate, traditional banks have expressed concerns about the potential impact on their core operations. The American Bankers Association, for instance, has called on the OCC to pause its review of national trust charter applications, arguing that the proliferation of stablecoins could siphon deposits from community banks and undermine their ability to fund local lending. Conversely, fintech advocates have welcomed the OCC’s actions, emphasizing that the agency’s trust charter framework promotes competition and enables new business models to serve customers more effectively. The debate underscores the tension between fostering innovation and ensuring financial stability, as regulators seek to strike a balance between encouraging growth in the crypto sector and mitigating risks to the broader financial system.

Looking ahead, the regulatory landscape is expected to continue evolving as agencies implement the recommendations of the PWG and respond to ongoing market developments. The Federal Reserve, FDIC, and OCC are anticipated to issue additional guidance on the legal permissibility of various digital asset activities, including “as principal” transactions, tokenization of deposits, and the use of permissionless blockchains. These efforts are likely to enhance regulatory clarity and provide banks with the tools necessary to navigate the rapidly changing digital asset ecosystem. At the same time, the implementation of the GENIUS Act and other legislative measures will play a crucial role in shaping the future of stablecoin issuance and oversight. As the U.S. regulatory framework continues to mature, it is expected to influence the global digital asset landscape, with other jurisdictions closely watching the outcomes of these developments. The interplay between regulatory innovation and market dynamics will ultimately determine the trajectory of the crypto industry and its integration into the broader financial system.

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