The OCC’s announcement effectively clarifies and expands the permissible scope of crypto-related activities for stablecoins and Bitcoin in traditional banks.
The Office of the Comptroller of the Currency (OCC), the federal body responsible for ensuring the stability and security of US banking institutions, has recently declared that these institutions can now legally interact with cryptocurrencies and stablecoins.
Banks Set to Unleash Trillions in Stablecoin Transactions
This pivotal regulatory adjustment empowers banks to participate in various digital asset ventures, including managing stablecoin transactions, providing secure custody for cryptocurrencies, and operating nodes within blockchain networks.
Financial observers broadly interpret this policy shift as a substantial and sustained positive development for the expanding crypto market.
These activities now explicitly encompass the safeguarding of digital assets on behalf of their clientele, facilitating payments using stablecoins, and engaging with blockchain infrastructure directly.
According to Rodney E. Wood, a senior official at the OCC, this updated stance aims to alleviate regulatory hurdles for banks exploring cryptocurrency engagement and ensure consistent regulatory treatment across all bank activities, irrespective of the technological foundations involved.
Crucially, the agency has also removed previous directives that had categorized crypto-assets as presenting a unique liquidity risk to the broader banking ecosystem.
Jeremy Allaire, the founder of Circle, the issuer of USDC, expressed immediate enthusiasm regarding this regulatory change.
He stated, “The integration of banks with USDC is on the horizon. We are moving closer to connecting the established financial infrastructure with the burgeoning internet-based financial system.”
This shift marks a significant departure from prior implicit restrictions, which is often referred to as ‘Operation ChokePoint 2.0,’. this had effectively discouraged banking services to crypto firms, limiting the sector’s access to traditional financial rails.
Notably, this revised approach aligns with a broader trend of increased cryptocurrency acceptance emerging under the current administration in Washington.
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