Federal banks, according to the OCC, are set to take control over the digital asset domain.
The Office of the Comptroller of the Currency (OCC) of the United States has taken a significant step forward in modernizing the financial sector by providing legal clarity for banks to engage with cryptocurrencies. This shift is primarily based on Interpretive Letters 1183 and 1184, issued prior to 2025.
In a historic move, Interpretive Letter 1183 granted national banks the authority to provide custody services for cryptocurrencies, while Letter 1184 clarified that banks could hold reserves and offer other services related to digital assets. These interpretive letters have laid the groundwork for safe bank engagement with digital assets under existing laws.
The OCC's stance is aimed at promoting innovation within the regulated financial system, ensuring secure and solid adoption of digital assets. This move eliminates the uncertainty that has hindered banks' participation in the growing digital ecosystem for years. As a result, banks can now buy, sell, and custody cryptocurrencies for their clients, as well as provide complementary services such as record-keeping, tax statements, and asset valuation.
The OCC's stance on cryptocurrency innovation is also shared by key regulators like the SEC, CFTC, Fed, and FDIC, who need to update their regulations to keep pace with this change. Coordination between these entities will be vital to establish a solid regulatory framework that fosters innovation without compromising security and consumer protection.
Acting Comptroller of the Currency, Rodney Hood, has issued a statement that validates the entry of regulated banking into the cryptocurrency sector. He highlighted that around 50 million people in the United States own cryptocurrencies, representing billions of dollars in commercial and financial activity.
Recently, regulatory clarity has advanced via federal banking agencies issuing joint statements emphasizing risk-management frameworks for banks offering crypto-asset safekeeping services. They stress the need for banks to conduct thorough risk assessments, develop robust control environments, ensure cybersecurity protections, and have sufficient technical expertise before engaging in crypto custody.
The institutional legitimization of cryptocurrencies within the traditional banking system may contribute to greater stability and maturity of the digital market. In the medium term, this regulatory opening is expected to drive the creation of new blockchain-based financial products.
A landmark legislation, the 2025 GENIUS Act, signed into law on July 18, 2025, marks the first comprehensive federal regulation specifically for stablecoins. It limits stablecoin issuance to insured depository institutions and requires full reserves and compliance with anti-money laundering and consumer protection measures. This legislation supports banks in providing stablecoin-related services within a clearer regulatory framework.
However, U.S. banks remain concerned about perceived regulatory "loopholes" in the GENIUS Act that may advantage crypto exchanges over traditional banking institutions, prompting calls for regulatory adjustments to maintain a level playing field.
In summary, the OCC’s role through Interpretive Letters 1183 and 1184 laid the initial regulatory groundwork for banks to engage with cryptocurrencies safely. The current regulatory landscape is evolving dynamically with federal agencies focusing on risk management and compliance, complemented by landmark legislation like the GENIUS Act establishing a federal framework for stablecoins. The future outlook suggests continued regulatory refinement aimed at fostering innovation in digital assets while safeguarding financial stability and consumer protections.
This decisive step towards modernizing the U.S. financial sector is a significant milestone, enabling it to take advantage of benefits like asset tokenization, stablecoins, and distributed ledger technologies.
Banks can now offer services related to digital assets, such as custody, record-keeping, tax statements, and asset valuation, thanks to the OCC's stance on cryptocurrencies.
The OCC's actions encourage banks to invest in technology, particularly blockchain-based financial products, as they search for new opportunities in the digital asset sector.
