The Office of the Comptroller of the Currency (OCC), the US bank regulator, set out a range of cryptocurrency activities that are permissible in the federal banking system, which will encourage institutional adoption. 

Olivia Vande Woude, business development for institutions & capital markets at AvaLabs, which builds blockchain technology, said: 

Banks once required explicit #OCC approval for crypto activities. Now, they have greater autonomy, provided they operate within the framework outlined in the letter.

This marks the beginning of institutional 🔺utonomy on @avax. pic.twitter.com/zOlU18sCc4

— Olivia Vande Woude (@cryptoreine) March 7, 2025

The #OCC Interpretive Letter 1183 means banks & federal savings associations can engage in crypto-asset custody.

Further🔺doption is on the way. pic.twitter.com/1GFYil4Lsi

— Olivia Vande Woude (@cryptoreine) March 8, 2025

The #OCC decision matters given that by allowing #banks to issue or facilitate stablecoin transactions, regulators are effectively integrating crypto into the financial system. This paves the way for faster settlements, enhanced cross-border payments, & broader institutional… https://t.co/sUdtjRpQVt

— Olivia Vande Woude (@cryptoreine) March 7, 2025

With the #OCC’s decision today, banks can run nodes on independent verification networks, validating transactions and securing the system.

This isn’t just a tech upgrade—it’s banks establishing a foothold in a space once dominated by fintechs and crypto-native firms.

Big…

— Olivia Vande Woude (@cryptoreine) March 7, 2025

Morgan Krupetsky, senior director of business development for institutions & capital markets at AvaLabs, said: 

One step closer to institutional adoption, a key US banking regulator now gives the green light for banks to leverage public blockchain networks.

Huge development for @avax 🔺https://t.co/OfV5r04ilK

— Morgan Krupetsky (@MorganKrupetsky) March 7, 2025

James Lavish, co- founder of the Bitcoin Opportunity Fund, said: 

Good evening.

US Banks being able to custody Bitcoin will be the largest positive catalyst for Bitcoin this year.

Have a great night.

— James Lavish (@jameslavish) March 9, 2025

Brian Armstrong, co-founder & chief executive at US-listed crypto exchange Coinbase, said: 

Great leadership from @USOCC and Acting Comptroller Hood for taking much needed action to rescind harmful rules which made it difficult for the digital assets industry to access financial services. Let’s make the US the crypto capital of the world! https://t.co/lbHlYprmuo

— Brian Armstrong (@brian_armstrong) March 8, 2025

OCC Clarifies Bank Authority to Engage in Certain Cryptocurrency Activities

The Office of the Comptroller of the Currency (OCC) took action toreaffirm that a range of cryptocurrency activities are permissible in the federal banking system.

The OCC published Interpretive Letter 1183 to confirm that crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations. The letter also rescinds the requirement for OCC-supervised institutions to receive supervisory nonobjection and demonstrate that they have adequate controls in place before they can engage in these cryptocurrency activities.

“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,” said Acting Comptroller of the Currency Rodney E. Hood. “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology. I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”

Consistent with Interpretive Letter 1183, the OCC also withdrew its participation in the joint statement on crypto-asset risks to banking organizations and the joint statement on liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities.

Related Links

• Interpretive Letter 1183 (PDF)
• Interpretive Letter 1170 on crypto-asset custody services (PDF)
• Interpretive Letter 1172 on stablecoin activities (PDF)
• Interpretive Letter 1174 on participation in independent node verification networks (PDF)
• Acting Comptroller of the Currency Rodney E. Hood

Source: OCC

US Strategic Bitcoin Reserve

In addition to the OCC setting out guidellines, President Trump signed an executive order on 6 March 2025 establishing a Strategic Bitcoin Reserve (SBR) and a US digital asset stockpile. Bitwise, the digital asset fund manager, said in a report that contrary to market expectations, Bitcoin immediately fell approximately 6% following the announcement in a “buy the rumour, sell the fact” type of market reaction.

“The details of the executive order reveal that it will allow the US government to conduct additional purchases of bitcoins although these purchases have to adhere to budget neutrality,” added Bitwise. “The question still remains whether budget neutrality has to be achieved in the short term already or whether there might be some wiggle room with respect to long-term budget-neutrality.”

Greg Cipolaro, global head of research at NYDIG, a financial services company focused on bitcoin, said in a report that the this came through an executive order rather than a law, makes it much less permanent, and could be easily undone by the next administration.

“We won’t have to worry about the US government selling its bitcoin stash, but only in the next four years,” added Cipolaro. “Still, we see the executive order as supportive of the broader digital asset industry, and it gives bitcoin a special place within the ecosystem.”