US Banks Cleared to Integrate Cryptocurrencies in Their Framework

Banks under the jurisdiction of the US Office of the Comptroller of the Currency (OCC) are now officially allowed to trade cryptocurrencies on behalf of their users. This has been officially confirmed by the acting comptroller, Rodney Hood, through a recent letter and press release. Here we will explore the implications and possibilities opened with this decision.

Easier Crypto Handling

The biggest change and improvement falls into the lap of banks’ clients. This increased level of control in the name of their parties will now open possibilities to get involved with the crypto market without having to do much on their own. Having an agent handling custody of their assets, bank users will be able to participate in 99Bitcoins top upcoming presales and other trading events through verified channels, acting on their instructions. Once the decision gets official, this will open the window even for those that were too afraid to jump into the world of crypto.

Third Party Involvement

One important side note here is that the banks might choose to use a sub-custodian for these services. This is important in the light of crypto risk management, as it is primary to have the services performed by certified and knowledgeable professionals in the field. This means that no action involving digital assets will be left to anyone that’s not well acquainted with the principles and rules of the whole process. 

OCC Regulations Ease

This change in stance is not so unexpected for those in the know. The OCC has previously untightened its squeeze on crypto handling this March, when it allowed its member banks to take custody of crypto assets. Providing the green light for stablecoin activities and participation in some blockchain network verifications signaled a positive change that we see taking place now. This independent institution regulates all national banks, so we can expect a federal-level improvement of the crypto situation, pointing further towards the end of Operation Chokepoint 2.0. 

Industry Voices Support

Permission for crypto handling has been met with joy from the industry experts. StarkWare’s general counsel, Katherine Kirkpatrick Bos, welcomed this shift and the improved clarity and guidance that should follow from the OCC. She said that the permission banks needed to enter the world of crypto should reduce all fear of overstepping boundaries and regulations. On her Twitter/X account, she underlined the importance of outsourcing crypto-assets as a “boon to regulated crypto native service providers.”

Similar sentiment came from the chief policy officer of Coinbase, Faryar Shirzad. He expressed satisfaction with the newly introduced best practices for the crypto regulations, as well as the change of attitude coming from the Trump administration ever since its inauguration in January.

Upcoming Changes

The current situation in the US shows that cryptocurrencies are moving further into the mainstream, with the federal government giving a helping hand in that process. Federal Reserve Chair Jerome Powell noticed that now we have Congress working on a clear regulatory framework for dollar stablecoin, and stated that there is both an appeal and a need for them to be adopted in the traditional financial system. This evolving course of the federal government towards digital assets is likely to bring positive feedback from the investors as soon as more legislative action falls into place in the remaining months of the year.