OCC Under Jonathan Gould Opens the Door to Broader Crypto Activies by Banks

Jonathan Gould, head of the Office of the Comptroller of the Currency (OCC), has signaled a shift toward a more expansive interpretation of crypto-related activities for national banks. This move—supported by several interpretive letters and the withdrawal of earlier joint warnings—aims to provide clearer regulatory guidelines for custody, stablecoins, and participation in decentralized networks.

Changes in Practice

The OCC now indicates that national banks can offer certain digital asset services without the prior approvals once required. Key developments include Interpretive Letters 1170, 1172, 1174, and 1183, along with the reversal of 2023 joint statements on market and liquidity risks. The agency seeks to establish clearer rules to help banks integrate crypto services within prudent operational frameworks.

Technical and Operational Scope

The interpretive letters set boundaries and conditions but do not remove oversight. The OCC has outlined specific permitted activities:

• Crypto custody: Banks can safeguard digital assets and manage keys under defined conditions.

• Stablecoin activities: Banks may hold reserves and facilitate transactions if prudential requirements are met.

• Node operation: Banks can run independent nodes or participate in transaction validation on certain distributed networks.

Market Reactions and Remaining Risks

The crypto industry has welcomed the regulatory clarity, but traditional banks warn of governance, liquidity, and reputational risks. Other regulators like the FDIC and the Federal Reserve maintain their authority and have set their own conditions for crypto engagement. Concerns remain over counterparty concentration and the need for robust controls to prevent systemic issues.