A U.S. regulator said on March 7 that banks can engage in some activities related to cryptocurrencies.
The Office of the Comptroller of the Currency (OCC) clarified in a statement that the permitted activities include keeping hold of crypto assets and maintaining reserves for stablecoins, a class of crypto that features prices tied to other assets.
The OCC said it was rescinding a 2021 policy that set limits on when banks could hold crypto, including the requirement that banks must show they have controls in place to ensure they conduct the activity in a “safe and sound manner.”
“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,” Acting Comptroller of the Currency Rodney E. Hood said in a statement. “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology. I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”…