US regulator clears path for banks to engage in some crypto activities

Written by the Schroeder House

WASHINGTON (Reuters) -American organizations that supervise national banks on Friday explained that banks can engage in some encryption activities, and expectations of expectations must obtain prior permission from the organizers before doing this.

The currency observer office said in a statement that it is allowed for national banks to engage in some encryption activities, such as custody custody of the encrypted assets, some stablecoin activities, and to participate in the distributive professor’s book networks.

OCC has also canceled previous guidelines to inform the banks that it should survey the encryption activities with the organizers in advance, including showing sufficient controls for this work.

Rodney Hood, the Chargé d’Affairs of the Financial Observer, said in a statement that the new guidance explains that the banks are clear that the risk management should have in place regardless of technology. This advertisement came on the same day when the White House hosted a coding summit, and hours after President Donald Trump signed an executive order that creates a strategic reserve for bitcoin and a handful of other encrypted currencies.

“Today’s procedure will reduce the burden on banks to participate in encryption activities and ensure that these banking activities are constantly treated by OCC, regardless of basic technology,” Hood said in a statement.

Specifically, on Friday, OCC canceled the directive of banks during the era of former President Joe Biden, which has already identified the additional handrails of banks that seek to engage in some encryption activities. The banks that were canceled told the banks that supervisors of the encryption activities should be pre -showed, show how they will deal with the risks, and ensure that there is no objection to the supervisor.

Occ has also withdrew from the common data previously released by American organizers, which effectively warn of banks against engaging with encryption. One of these statements, issued in 2023, was not prohibited from banks to carry out encryption work, but he warned that the sector is subject to “great fluctuations” and said that any banking activities will be examined closely.

(Participated in the reports of the Schroeder House; edited by Chris Rice and David Gregorio)