US Regulators Give Green Light: Banks Can Fully Engage with Crypto – No Prior Approval Needed

The U.S. banking regulator, the Office of the Comptroller of the Currency (OCC), has officially confirmed:

Banks are now permitted to conduct cryptocurrency transactions, offer custodial services through third-party providers, and handle tax reporting for digital assets.

📍 Key Regulatory Shifts:
No longer requires prior approval from the OCC for banks to engage in crypto activities.
Rescinds previous restrictive interpretations issued in 2021.
Allows banks to work with digital assets directly or via infrastructure partners.

🗓️ Broader Context – Recent Developments:
January: The controversial SAB 121 accounting rule, which complicated banks holding crypto, was reversed.
March: The FDIC clarified that banks can engage in digital asset activities without needing specific supervisory approval.
April: The Federal Reserve withdrew guidance that had effectively deterred banks from entering the crypto space.

🚫 Significant Change in Tone:
Crucially, the three major regulators – the OCC, FDIC, and Federal Reserve – have withdrawn their previous joint statements that warned of "significant risks" and potential "fraud" in the crypto industry, as well as potential harm to investors.

✅ The Big Picture:
The U.S. financial system is clearly opening its doors wider to the crypto ecosystem. This move removes major regulatory uncertainties, allowing large traditional banks to confidently explore and enter the digital asset industry without facing excessive red tape or fear of regulatory backlash.

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