WASHINGTON–Banks can now engage in “a range of cryptocurrency activities” now deemed permissible by the national bank regulator, according to the OCC.

In interpretive letter 1183 to banks) the Office of the Comptroller of the Currency (OCC) said crypto-asset custody, “certain stablecoin activities,” and “participation in independent node verification networks such as distributed ledger” are now all permissible for national banks and federal savings associations.

In addition, the OCC also rescinded a prior requirement that banks it supervises must receive “supervisory nonobjection” and show they have adequate controls in place before they can engage in these cryptocurrency activities.

Participation Withdrawn

The OCC said it has also withdrawn its participation in the joint statement on crypto-asset risks to banking organizations and the joint statement on liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities.

The acting Comptroller of the Currency Rodney Hood—the former chairman of NCUA–said the agency “expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones” regardless of the underlying technology.

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