OCC Empowers Banks with New Crypto and DeFi Regulations – BitRss

The U.S. Office of the Comptroller of the Currency (OCC) has granted federal banks the authority to store cryptocurrencies, conduct stablecoin transactions, and utilize blockchain technology. The regulations clarified in Interpretive Letter 1183, published on March 7, aim to expand the role of banks in payment systems. These new rules facilitate financial institutions’ involvement in decentralized finance (DeFi) protocols, easing licensing requirements.

Banking Regulations for Crypto and DeFi

The OCC’s established rules allow federal banks to store cryptocurrencies on behalf of their customers and manage specific stablecoin transactions. The regulatory body has streamlined the pre-approval processes necessary for banks to operate in these areas. For instance, tasks like node validation in certain DeFi projects will no longer require additional licensing.

This decision aims to enhance the security of blockchain-based payment systems and institutionalize digital asset management. The OCC emphasized that by adopting these technologies, banks could offer innovative solutions in financial services. The regulations are believed to position U.S. banks favorably in the global competitive landscape.