Ah, mesdames et messieurs! The illustrious Office of the Comptroller of the Currency (OCC) has bestowed upon us a most delightful decree, permitting our national banks and federal savings associations to frolic in the fields of crypto custody and stablecoin services without the tiresome burden of prior regulatory approval! 🎉
What a splendid turn of events for the cryptocurrency realm, as we bid adieu to the suffocating practices of yore, such as the infamous Operation Choke Point 2.0. One might say, “Liberté, égalité, crypto!”
OCC Unleashes the Banks and Crypto! 🏦💰
In this latest missive, Interpretive Letter 1183, the OCC has declared that banks may now engage in these merry activities under the existing banking laws. Gone is the need for the tiresome supervisory non-objection—what a relief! It’s as if the banks have been granted a golden ticket to the digital asset carnival!
Yet, dear reader, do not be fooled by this newfound freedom! The OCC has cautioned that while the chains of approval have been cast aside, banks must still wield strong risk management controls, akin to those required for their traditional banking escapades. After all, one must not throw caution to the wind, n’est-ce pas?
“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,” quoth Rodney E. Hood, the acting Comptroller of the Currency.
He further proclaimed that this decision shall lower the barriers for banks eager to dip their toes into the crypto waters. A significant victory indeed, following the valiant legal battles waged by industry titans like Brian Armstrong, who recently took the FDIC to task for attempting to sever the bonds between banking and crypto. What a drama! 🎭
Key figures in the crypto sphere, such as Circle CEO Jeremy Allaire, have greeted the OCC’s announcement with unbridled enthusiasm.
“Let’s go! Banks using USDC. Coming soon to a blockchain near you. We are excited about wiring up the existing financial system to the new Internet financial system. Circle Mint is open for business,” exclaimed Allaire, as if he were announcing a grand festival! 🎊
Meanwhile, the ever-astute crypto analyst Marty Party has pointed out the economic ramifications of this decision. He noted that US banks may now serve as validators on public networks, hold crypto for their customers, and embrace stablecoins. What a time to be alive!
Scott Melker, affectionately known as The Wolf of All Streets, also sang praises for the OCC’s reaffirmation that crypto activities are now fully permissible in the grand tapestry of the US federal banking system. 🐺
And let us not forget the Bank of America (BoA), which has recently pledged to launch a stablecoin, should the winds of new US regulations blow favorably. Perhaps they shall join the ranks of Ripple in this burgeoning stablecoin marketplace!
Custodia Bank CEO Says Not Necessarily A Green Light 🚦
Yet, amidst the jubilant celebrations, some wise sages of the industry have urged a modicum of caution. Caitlin Long, the founder and CEO of Custodia Bank, has pointed out that while the OCC’s guidance is a step in the right direction, the road ahead is still fraught with regulatory obstacles.
“Wish it were so, but we’re not quite there yet—here’s why. There are nuances to US bank regulation,” she lamented, as if she were a tragic heroine in a play.
Long further elucidated that the anti-crypto guidance from the Federal Reserve (Fed) and FDIC remains firmly in place, creating hurdles for banks wishing to fully embrace the digital asset revolution. Alas, the plot thickens!
“Amid all the jubilation about the OCC news, Operation Choke Point 2.0 isn’t over until: 1. Fed & FDIC also rescind their anti-crypto guidance, which is still in effect, and 2. Custodia Bank has its Fed master account,” she explained, as if reciting a cautionary tale.
In a twist of fate, earlier this year, Custodia Bank was denied a master account, which would grant it access to the Fed’s liquidity facilities.
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2025-03-08 12:02