OCC Lifts Restrictions: U.S. Banks Gain More Freedom for Crypto Transactions

National banks and federal savings associations can now engage in digital asset transactions without requiring prior regulatory approval. The updated rules allow banks to offer crypto custody services, conduct certain stablecoin transactions, and participate in independent node verification networks.

Previously, regulators closely monitored banks' involvement in the crypto sector, creating significant barriers for digital companies seeking access to traditional financial services. This latest announcement signals the regulator’s intent to ease excessive restrictions that have stifled innovation while maintaining strong risk management standards.

Today’s action will 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,

said Acting Comptroller of the Currency Rodney Hood. 

Under the new framework, the OCC no longer requires financial institutions to obtain prior approval for engaging in cryptocurrency-related activities. This decision comes after extensive analysis and experience in working with crypto assets, enabling regulators to better understand the technologies behind them.

Related: Michael Barr Details the Fed’s Position Amid Crypto Debanking

This regulatory update comes amid a series of high-level statements from government officials. Recently, during the White House Crypto Summit, President Donald Trump called for an end to Operation Choke Point 2.0—a policy he claimed had put excessive pressure on banks, forcing them to close crypto firm accounts and restrict financial flows in the industry.

Additionally,  other industry leaders raised similar concerns. For instance, Custodia Bank founder Caitlin Long warned that fully eliminating these obstacles would require further regulatory reforms, particularly those involving the FDIC and the Federal Reserve.

The new OCC regulations have received positive feedback from some lawmakers, who see them as an opportunity to foster a more favorable environment for the growth of the crypto industry in the U.S. while maintaining necessary oversight of banking activities. The OCC’s decision is viewed as a significant step toward modernizing the financial sector amid the rapid advancement of digital technologies and financial innovations.

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