- The OCC has eased restrictions, allowing US national banks and federal savings associations to engage in cryptocurrency activities with fewer regulatory hurdles.
- President Trump’s administration further boosted crypto confidence by ending “Operation Chokepoint 2.0” and initiating a strategic reserve for Bitcoin and major digital currencies.
Banks in the United States got a clear signal to push further into cryptocurrency after the recent clarification from the U.S. regulatory body overseeing national banks. On Friday, the Office of the Comptroller of the Currency (OCC) made it easier for national banks and federal savings associations to handle cryptocurrency custody, process stablecoin transactions, and run blockchain nodes.
The OCC reaffirmed that crypto-asset custody, holding deposits that serve as reserves backing stablecoins, & the use of distributed ledger technology & stablecoins to facilitate permissible payments activities are permissible in the federal banking system. https://t.co/ifOdvjzEYJ pic.twitter.com/t7AXenXix3
— OCC (@USOCC) March 7, 2025
Earlier, strict conditions made it tougher, especially when President Joe Biden was in office. Banks had to get direct approval, submit detailed risk plans, and keep regulators updated before making crypto moves. The OCC’s latest decision removes those barriers, allowing banks to enter the crypto space with fewer restrictions.
“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,” Acting Comptroller of the Currency Rodney E. Hood explained.
Trump’s Crypto Boost—Strategic Reserves, “Chokepoint” Ends
That update cancels earlier joint statements from U.S. regulators. Those past warnings did not ban crypto but called it highly risky and warned banks that their crypto dealings would be closely watched. That decision signals a clear softening of the federal stance on cryptocurrency.
That same day, President Donald Trump took more action to lift confidence in crypto. At the White House Crypto Summit, he signed an order to create a strategic reserve for Bitcoin and major digital currencies. He also declared the official end of “Operation Chokepoint 2.0,” a policy that pushed banks away from crypto businesses.
Trump strongly criticized that operation for hurting legitimate crypto firms. He claimed, “it was ended for votes, not the right reasons,” hinting at political motives behind the crackdown on crypto banking. That shift in policy shows a more welcoming attitude toward cryptocurrency in Washington and marks a key change in direction.
Industry Reaction and Ongoing Challenges
The financial sector broadly welcomed these announcements, viewing them as a major breakthrough toward widespread crypto adoption. However, some voices in the industry emphasize caution. Caitlin Long, CEO of Custodia Bank, tweeted on March 7, reminding stakeholders that the battle isn’t completely won yet. Operation Chokepoint 2.0 isn’t over until the U.S. Federal Reserve and the FDIC also revoke their ‘anti-crypto guidance,’ she cautioned.
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 far more detrimental to crypto banking than OCC) &
2. @custodiabank has its Fed master account. https://t.co/KjhxLk54aw— Caitlin Long
(@CaitlinLong_) March 7, 2025
Despite these positive developments, banks aren’t entirely out of the woods. They still need robust systems to manage compliance with strict anti-money laundering (AML) and Know Your Customer (KYC) regulations. Ensuring these compliance frameworks are airtight will remain an essential step toward safely integrating cryptocurrencies into traditional banking operations.
Overall, this regulatory update marks a significant leap forward for cryptocurrency within the traditional banking sector. It paves the way for deeper integration and broader acceptance of digital currencies, reshaping the financial landscape significantly. Banks now stand at the cusp of a new era, confidently stepping into the future of finance.
