OCC Greenlights Banks’ Crypto Activities

Jonathan Gould, head of the Office of the Comptroller of the Currency (OCC), said earlier this month that the crypto activities that many banks want to participate in are legally permissible. He wants to eradicate a two-tiered system that stigmatizes these activities and makes it more difficult for banks to participate in them. 

“We’re going to take a step back to see if we’re going to work much more closely with those who are interested in doing these activities, and we’re going to chart a path to ensure you can do it in a safe and sound manner,” Gould said, according to Bloomberg. “This is our obligation as supervisors and regulators when you’re engaged in legally permissible activities.”

At a CoinDesk event in Washington, Gould said that the crypto industry’s complaints about debanking are legitimate, and that the OCC is aiming to “depoliticize banking” and eliminate “unlawful debanking.” The regulator stated that it assesses debanking when evaluating licensing activities, and reminded institutions to ensure they avoid unlawful debanking. 

When a bank wants to participate in new activities, it must ensure it has the necessary infrastructure to support it. Gould said that the OCC’s supervision and regulations have to recognize that there may be certain risks presented with the technologies that must be specifically addressed. “But I don’t see innovation as inconsistent with safety and soundness on its face,” he said.

PYMNTS highlighted that top regulators have started to welcome digital assets after President Donald Trump said he would make the U.S. the “crypto capital of the planet” during his campaign. Since then, Trump has issued executive orders supporting crypto and signed a law to regulate stablecoins while he and his family develop and expand their ties to the industry.