OCC removes supervisory nonobjection requirement for permissible bank crypto activities

What changed

The OCC reaffirmed prior legal conclusions permitting specified crypto custody, stablecoin, and distributed-ledger activities and rescinded the requirement that a national bank obtain written supervisory nonobjection before engaging in them. Banks remain subject to safe-and-sound practices and ordinary supervisory review.

Who it affects

• National banks and federal savings associations
• Advisers conducting diligence on bank custodians and settlement providers

What is still open

• Which banks will launch or expand services
• How institution-specific risk management and examiner expectations will develop

What it means for an advisor

• Reassess the bank-custody vendor universe and actual service capabilities
• Verify contract, control, insurance, segregation, and asset-support details rather than relying on general legal permissibility

Previous interpretation

Interpretive Letter 1179 required written OCC supervisory nonobjection before a bank began the covered crypto activities.