Regulatory Approval Secured—How US Banks Are Entering the Crypto Market

The Office of the Comptroller of the Currency (OCC) has officially cleared the way for federal banks to engage in cryptocurrency activities, marking a significant regulatory shift in the U.S. financial landscape. The decision comes on the heels of the United States’ move to adopt Bitcoin and select altcoins as reserve assets, further solidifying the nation’s growing embrace of digital currencies.

OCC Removes Barriers for Banks Entering Crypto Space

Previously, federal banks faced stringent restrictions on servicing crypto firms, largely due to regulatory uncertainty. However, the OCC’s latest interpretive guidance has overturned these limitations, allowing banks to provide a range of services related to virtual assets.

The published Interpretive Letter 1183 explicitly states that banks can now legally participate in crypto custody, stablecoin-related enterprises, and blockchain-based verifications. Additionally, the OCC has revoked prior guidance that required national banks and federal savings associations to seek regulatory approval before engaging with digital assets.

This decision effectively reverses a key restriction imposed under the Biden administration, aligning with the policy direction of President Donald Trump, who has advocated for a more crypto-friendly regulatory framework.

A Game Changer for Crypto Banking

Rodney E. Hood, acting Comptroller of the Currency, emphasized that the new directive aims to address banks’ hesitation toward engaging with the digital asset industry. He reassured financial institutions that they could now offer crypto services, provided they implement appropriate risk management procedures, similar to those used for traditional assets.

“This clarification removes unnecessary barriers and encourages responsible participation in the evolving digital economy,” Hood said.

Scrapping Previous Anti-Crypto Guidelines

In addition to the interpretive letter, the OCC has withdrawn its participation in a 2023 joint circular that discouraged banks from engaging in crypto-related activities due to concerns over market volatility and security risks. Although that statement did not explicitly ban national banks from dealing with digital assets, it created widespread uncertainty that led many financial institutions to avoid the sector altogether.

The latest policy shift is expected to change that dynamic, enabling banks to confidently integrate crypto services without fear of regulatory backlash.

Coinbase and Industry Lobbying Pay Off

The move follows persistent lobbying efforts by industry leaders like Coinbase, which had pushed for clearer federal guidelines to reduce friction between the crypto sector and banks. In February, the leading U.S.-based exchange sent a letter to federal regulators urging the OCC to issue a definitive stance on the matter.

Crypto analysts see this as a bullish development for the market. Some experts predict that assets like XRP could particularly benefit, as the new framework may facilitate the adoption of stablecoins like RLUSD in mainstream financial systems.

The Future of Crypto Banking in the U.S.

With federal banks now officially authorized to engage with crypto services, industry watchers anticipate a significant boost in institutional participation. This development not only legitimizes digital assets but also paves the way for greater financial innovation and adoption.

As regulatory clarity improves, banks are likely to expand their offerings, from cryptocurrency custodial services to stablecoin settlements and blockchain-powered financial products. The OCC’s decision marks a historic milestone, signaling that the U.S. is moving toward a more integrated and regulated digital economy.