US Banks Can Officially Engage in Crypto Activities Without Prior Approval

The Office of the Comptroller of the Currency (OCC), the U.S. regulator responsible for overseeing national banks, has announced that U.S. banks can now engage in specific crypto-related activities without prior approval.

Banks are now permitted to store digital assets, engage in stablecoin transactions, and serve as validators of Proof-of-Stake blockchains.

This marks a change from Biden-era policies that required banks to seek regulatory permission before engaging in crypto. Acting Comptroller Rodney Hood stressed that while banks have more freedom, they must maintain strict controls over risk management, similar to traditional banking activities.

The crypto industry welcomed the news. Nick Carter called it “the biggest news of the day” and Alexander Grivobiavi “Goodbye, Operation Choke POint 2.0”. The announcement coincided with a crypto summit at the White House following President Trump’s executive order to create a strategic reserve for Bitcoin.

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However, Caitlin Long, founder of Custodia Bank, warned that the regulatory battle is not over until the Federal Reserve and FDIC rescind their anti-crypto guidelines and Custodia secures a master Fed account.

This decision marks an important step towards integrating cryptocurrencies into the US banking system.