OCC Eases Cryptocurrency Banking Regulations After Trump’s Commitment to Conclude Enforcement Actions

The U.S. Office of the Comptroller of the Currency (OCC) has eased its limitations on banks interacting with cryptocurrency, just hours after former President Donald Trump vowed to eliminate regulatory obstacles affecting the industry.

In a statement released on March 7, the OCC clarified that national banks and federal savings associations are now permitted to engage in crypto custody, stablecoin-related activities, and participate in distributed ledger networks.

This represents a significant change in regulatory oversight, reversing some of the previous barriers that had constrained banks’ participation in digital assets.

OCC’s Interpretive Letter 1183 Lifts Crypto Banking Restrictions

The decision was detailed in Interpretive Letter 1183, which eliminates the necessity for OCC-supervised banks to obtain “supervisory nonobjection” prior to engaging in crypto-related activities.

Acting Comptroller of the Currency Rodney E. Hood highlighted that this action aims to “reduce the burden on banks” and ensure consistent regulatory treatment of crypto-related banking activities.

The OCC noted that its staff now possesses a deeper understanding of the crypto sector, allowing the agency to adjust its previously stringent policies.

The modification is intended to promote responsible innovation while enhancing transparency within the banking sector.

While the crypto industry has welcomed the OCC’s announcement, Custodia Bank CEO Caitlin Long warned that the broader regulatory crackdown is not entirely resolved.

In a March 7 post on X, Long contended that Operation Chokepoint 2.0 remains active until the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) also retract their “anti-crypto guidance.”

The timing of the OCC’s decision coincides with Trump’s remarks at the White House Crypto Summit, where he spoke to industry leaders and pledged to end the regulatory crackdown.

AMID ALL THE JUBILATION ABOUT the OCC news, #OperationChokePoint2.0 isn’t over until:
1. Fed & FDIC also rescind their anti-#crypto guidance, which is still in effect (Fed & FDIC were much more detrimental to crypto banking than OCC) &
2. @custodiabank has its Fed master account. https://t.co/KjhxLk54aw

— Caitlin Long (@CaitlinLong_) March 7, 2025

“Some people really suffered; it was absurd what they were doing,” Trump remarked, referring to the regulatory pressure on crypto firms.

“Ultimately, they came around, but they came around for the wrong reasons—only because they wanted votes.”

Operation Chokepoint 2.0, an initiative that restricted crypto firms’ access to banking services, has been a significant point of contention within the industry, particularly during the 2024 U.S. election.

Trump criticized regulators for pressuring banks to sever ties with crypto companies and obstructing money transfers to and from exchanges.

“They weaponized the government against the entire industry,” he asserted. “But I know that feeling too, perhaps better than you do; all that will soon be over.”

Crypto Firms Rely on Stablecoins Amid Banking Restrictions

Numerous crypto companies have turned to stablecoins to finance their operations after traditional banks terminated their business accounts.

Meanwhile, on January 16, Wyoming Senator Cynthia Lummis accused the FDIC of attempting to conceal its involvement in Operation Chokepoint 2.0.

In a letter, she claimed that whistleblowers informed her of document destruction related to the program.

“If it is revealed that you or your staff have knowingly destroyed materials or sought to impede the oversight functions of the Senate, I will make swift criminal referrals to the U.S. Department of Justice,” Lummis cautioned.

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