- OCC removes requirement for banks to obtain “supervisory nonobjection” before engaging in crypto activities, easing regulatory barriers.
- The policy shift occurred hours after President Trump promised to end Operation Chokepoint 2.0 at the White House Crypto Summit.
- Industry experts note that complete regulatory relief requires similar action from the Federal Reserve and FDIC.
The Office of the Comptroller of the Currency (OCC) has officially relaxed its regulatory stance on banking institutions engaging with cryptocurrency, eliminating a key barrier that prevented traditional financial institutions from offering crypto services. This regulatory shift came just hours after President Donald Trump pledged to terminate “Operation Chokepoint 2.0” during a White House meeting with cryptocurrency executives.
According to a March 7 statement, the OCC confirmed that national banks and federal savings associations can now legally offer crypto-asset custody services, engage in certain stablecoin activities, and participate in distributed ledger networks without special approval.
The revised guidance, outlined in the regulator’s “Interpretive Letter 1183,” removes the previous requirement for financial institutions to obtain “supervisory nonobjection” before entering the cryptocurrency space—a significant procedural hurdle that limited banking participation in digital asset markets.
Acting Comptroller of the Currency Rodney E. Hood explained the rationale behind the policy shift: “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.”
The agency justified its change in approach by noting that its staff has developed a deeper understanding of cryptocurrency technology over time. This improved comprehension prompted the OCC to roll back its earlier restrictive guidelines to “encourage responsible innovation and enhance transparency” in the financial sector.
While cryptocurrency industry participants welcomed the OCC’s announcement, some remain cautious about declaring victory over regulatory barriers. Custodia Bank founder and CEO Caitlin Long stated on X that Operation Chokepoint 2.0 “isn’t over” until the Federal Reserve and Federal Deposit Insurance Corporation also rescind their “anti-crypto guidance.”
The timing of the OCC’s announcement is particularly notable, coming mere hours after President Trump told cryptocurrency executives at the White House Crypto Summit that he was “ending Operation Chokepoint 2.0.” Trump characterized the regulatory initiative as one that had caused significant harm to the industry, saying: “Some people really suffered, it was ridiculous what they were doing. In the end, they came around, but they came around for the wrong reasons, only because they wanted votes.”
The President further described how the regulatory pressure affected cryptocurrency businesses: “They strong-armed banks into closing crypto businesses and entrepreneurs effectively blocking money transfers to and from exchanges, and they weaponized the government against the entire industry.” He added, “But I know that feeling also, maybe better than you do; all that will soon be over.”
Operation Chokepoint 2.0—a term referring to coordinated regulatory pressure against cryptocurrency companies’ access to banking services—has been a significant concern for the digital asset industry. The debanking phenomenon forced many cryptocurrency firms to rely on stablecoins to finance their operations after losing traditional banking relationships.
The controversy surrounding these regulatory practices reached Congress earlier this year when Wyoming Senator Cynthia Lummis sent a letter to the FDIC in January claiming whistleblowers had informed her about the alleged destruction of documents related to Operation Chokepoint 2.0. Her letter contained a stark warning: “If it is uncovered that you or your staff have knowingly destroyed materials or sought to obstruct the oversight functions of the Senate, I will make swift criminal referrals to the US Department of Justice.”
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