Regulation
OCC Clears Federal Banks to Engage In Crypto Activities
The Office of the Comptroller of the Currency (OCC) has clarified that Federal Banks are now permitted to carry out “certain cryptocurrency activities.” Industry leaders have described this as the biggest news of the week, and the OCC now confirms that the war on crypto is officially over.
The OCC, Federal Banks, and Crypto
On March 7, the OCC published Interpretive Letter 1183, which clarified banks’ participation in crypto-asset custody. Federal Banks can also participate in certain stablecoin activities to reaffirm their role in the payment sector.
In addition to these two, the OCC said banks may engage in some Decentralized Finance (DeFi) activities. These include taking up an independent role in node verification for blockchain protocols.
In addition to these allowances, the Currency Comptroller also rolled back the need for licenses by banks before participating in these DeFi activities. Ultimately, the OCC clarified that banks may also pursue these crypto activities without proof that they have “adequate controls in place before they can engage in these cryptocurrency activities.”
This is a developing story, please check back for updates!!!
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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