Updates from the US Office of the Comptroller of the Currency

The OCC has been hinting at getting involved in crypto regulation for a while now. With the former top lawyer from Coinbase now leading the OCC, they’re starting to take action. On July 22, they put out a guidance letter allowing US chartered banks to hold crypto assets. Check out the link below. I have a feeling there’s more coming from the OCC. Is this just more chatter, or could the OCC actually influence adoption?

interesting, thanks for sharing. it opens the door for nationally chartered banks to take crypto deposits and perform related services, although the advice letter makes it sound like it was already implicitly legal anyway. this won't have any effect on derivatives and securities (ETF) markets since those types of offerings also have to comply with CFTC, SEC, etc regulations. as for encouraging adoption, i don't expect much to happen immediately. most banks will be too conservative to dip their toes in for quite a while, and small, tech-minded banks can only penetrate so far. having said all that, it's quite a sight to see. bitcoin sure has come a long way.

A good example to be imitated by other countries and banks, which carry out crypto transactions, a good step for OCC crypto users to do that, you can automatically see how big the function of the bank is towards intermediation. A good step for the OCC and the US at a time when the need for the Bank is increasing by using technology, innovative, to provide services to customers and the crypto community in the US. I know that in the US there are some banks that have been serving and storing electronic assets, with the implementation of this rule by the OCC, it will be more motivated for other banks, which have not used crypto storage services.

Correct. The OCC cannot make law but only interprets the laws Congress writes or issues regulations when Congress grants them specific authority to do so. In a way, the OCC coming out and saying it this way is better right now since it implies that any banks that have been doing this were not breaking the law. Correct Banks will move slow but I'm already seeing some start to inquire about testing possible custody offerings. You'll see the fintech companies move in first, perhaps getting the new payments charter. There will be lots of push back here. Entrenched national banks, state chartered banks, and state regulators (who are dependent on fees) will view this as a threat. Thankfully the OCC does not appear to care and would rather open up competition. I'd expect to see the OCC move in further by perhaps allowing trading or encouraging the development of bank issued stablecoins.