US Regulator Clears Path for Banks to Engage in Some Crypto Activities
The U.S. regulator overseeing national banks clarified that banks can engage in some crypto activities, such as crypto-asset custody, stablecoin activities, and participation in distributed ledger networks, without needing advance permission from regulators beforehand. This new guidance removes the expectation that firms should clear their crypto-related activities with regulators first, including demonstrating adequate controls for those business lines. The OCC also rescinded prior guidance telling banks to brief their supervisors on crypto activities beforehand.
- The removal of these guardrails may lead to increased innovation and risk-taking in the banking sector as banks explore new opportunities in the rapidly evolving world of cryptocurrency.
- How will the OCC's new stance on crypto regulations impact the potential for mainstream adoption of cryptocurrencies by traditional financial institutions?