OCC: Federally regulated banks can engage in crypto custody and certain stablecoin activities

The Office of the Comptroller of the Currency (OCC) issued a new letter, announcing the revocation of Interpretation Letter 1179 issued on November 18, 2021, and reaffirming that the activities related to cryptocurrency custody, distributed ledger, and stablecoins discussed in the previous letter are allowed.

The OCC confirmed in the letter: "National banks and federal savings associations may engage in cryptocurrency custody, certain stablecoin activities, and participate in independent node verification networks." Acting Comptroller of the Currency Rodney E. Hood stated: "The OCC hopes that banks will be able to adopt risk management controls as strong as those for traditional banking activities to support new banking activities."

The agency also stated that it has withdrawn the requirement for institutions to implement restrictive controls before engaging in cryptocurrency activities.