The office of the currency controller (OCC) has confirmed that certain cryptocurrency activities are now authorized for banks and federal savings associations.
The OCC has announced this change through the letter of interpretation 1183, which indicates that banks can now manage custody of crypto assets, manage stablecoins and join networks such as large book systems distributed.
The OUC also clearly indicated that these activities should be processed in the same way as traditional banking services. The acting controller Rodney E. Hood explained: “The Occ is expected that banks have the same strong risk management controls to support new banking activities as for traditional activities.”
He added that this change would help reduce the burden of banks and ensure the consistency of how these activities are managed. Hood also said: “I will continue to work with diligence to ensure that the regulations are effective and not excessive, while maintaining a solid federal banking system.”
In addition to this clarification, the OCC has also withdrawn its participation in two previous joint declarations which warned against cryptographic risks for banks.
Read also: The FDIC opens doors to banks to engage in cryptographic activities
