The U.S. Office of the Comptroller of the Cryptocurrency has made it easier for banks to work with cryptocurrency. Prior to this alteration, banks needed permission to provide crypto services. They are now able to offer services including crypto custody (holding digital money for customers), stablecoin transactions and working with blockchain networks without the need for authorisation beforehand.
This new rule, Interpretive Letter 1183, is replacing older rules that also made it hard for the banks to do crypto business. OCC also removed past warnings about crypto’s risks to make it clear that banks do not need additional permission. Nevertheless, banks still have to manage risks properly, as in regular financial activities.
Changes made in these rules will make banking rules fair for crypto related activities, said Rodney Hood, acting Comptroller of the Currency. He also said banks need to be cautious and keep strong security measures in place.
The announcement came the same day as the crypto summit at White House and a few hours after former US president Donald Trump issued an order to create a Bitcoin reserve. This is seen by many experts as a positive step in the crypto industry. In fact, some banks may launch a stablecoin of their own at some point.
Still, some challenges remain. Other aspects with crypto are subject to stricter rules than the CFPB, like the Federal Reserve and FDIC. Although this move paves the way for banks, the banks might need more time for full acceptance of crypto.
Also read: US Backs Stablecoins to Maintain Dollar Hegemony, Says Bessent
