The Office of the Comptroller of the Currency (OCC) has issued a new directive allowing national banks and federal savings associations to provide custody services for digital currencies and stablecoins without prior regulatory approval. This decision marks a significant advancement in the digital currency sector. Under interpretative letter 1183, banks can engage in these activities under existing banking laws. While signaling a major shift in supervisory policy, the OCC has emphasized that banks must maintain strong risk management controls. Rodney E. Hood, Acting Comptroller of the Currency, stated that this move reduces barriers for banks looking to engage in digital currency-related activities. Industry leaders in the digital currency space have welcomed this announcement. However, Caitlin Long, CEO of Avanti Bank & Trust, cautioned that broader regulatory hurdles still exist, and anti-digital currency directives from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) remain in effect.
