The US Treasury’s independent bureau responsible for protecting America’s national banking system has confirmed that certain cryptocurrency activities are now permissible within traditional federal banking rules.
The Office of the Comptroller of the Currency (OCC) published a letter on Friday (7 March) which officially approved banks to participate in areas of crypto custody, stablecoins and on independent node networks.
In a statement, acting comptroller of the currency, Rodney Hood, said the move would “reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology”.
He said: “The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones.
“I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”
The statement accompanied an official letter – “Interpretive Letter 1183” – that rescinded a previous communication that had, until this point, prevented banks from participation in some of these activities.
In the letter, Hood concluded “the OCC has determined that Interpretive Letter 1179 is no longer necessary.
“This rescission is intended to reduce burden, encourage responsible innovation, and enhance transparency. The rescission will also ensure that bank activities will be treated consistently, regardless of the underlying technology.”
