The U.S. Office of the Comptroller of the Currency (OCC) has relaxed its restrictions on banks engaging with crypto, just hours after former President Donald Trump pledged to end regulatory barriers hindering the industry.
In a March 7 statement, the OCC clarified that national banks and federal savings associations can now engage in crypto custody, stablecoin-related activities, and participate in distributed ledger networks.
This marks a significant shift in regulatory oversight, reversing some of the previous hurdles that had limited banks’ involvement with digital assets.
OCC’s Interpretive Letter 1183 Removes Crypto Banking Restrictions
The decision was outlined in Interpretive Letter 1183, which removes the requirement for OCC-supervised banks to seek “supervisory nonobjection” before engaging in crypto-related activities.
Acting Comptroller of the Currency Rodney E. Hood emphasized that the move aims to “reduce the burden on banks” and ensure consistent regulatory treatment of crypto-related banking activities.
The OCC explained that its staff now has a stronger understanding of the crypto sector, enabling the agency to adjust its previous stringent policies.
The change is intended to foster responsible innovation while improving transparency within the banking industry.
While the crypto sector has welcomed the OCC’s announcement, Custodia Bank CEO Caitlin Long cautioned that the broader regulatory crackdown is not fully over.
In a March 7 post on X, Long argued that Operation Chokepoint 2.0 remains in effect until the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) also withdraw their “anti-crypto guidance.”
The timing of the OCC’s decision aligns with Trump’s statements at the White House Crypto Summit, where he addressed industry leaders and vowed to bring an end to the crackdown.
“Some people really suffered, it was ridiculous what they were doing,” Trump said, referring to the regulatory pressure on crypto firms.
“In the end, they came around, but they came around for the wrong reasons—only because they wanted votes.”
Operation Chokepoint 2.0, an initiative that limited crypto firms’ access to banking services, has been a major point of contention within the industry, particularly during the 2024 U.S. election.
Trump criticized regulators for pressuring banks to cut ties with crypto businesses and blocking money transfers to and from exchanges.
“They weaponized the government against the entire industry,” he claimed. “But I know that feeling also, maybe better than you do; all that will soon be over.”
Crypto Firms Rely on Stablecoins Amid Banking Restrictions
Many crypto firms turned to stablecoins to fund operations after traditional banks severed their business accounts.
Meanwhile, on Jan. 16, Wyoming Senator Cynthia Lummis accused the FDIC of attempting to cover up its involvement in Operation Chokepoint 2.0.
In a letter, she alleged that whistleblowers informed her of document destruction related to the program.
“If it is uncovered that you or your staff have knowingly destroyed materials or sought to obstruct the oversight functions of the Senate, I will make swift criminal referrals to the U.S. Department of Justice,” Lummis warned.
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