U.S. banking regulators just tore down the crypto wall. In a stunning reversal, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1183 on March 7, 2025, fundamentally giving the green light for national banks to engage in cryptocurrency activities without asking for permission first.
About 1,200 national banks, federal savings associations, and roughly 50 federal branches of foreign banks can now participate in crypto-asset custody, stablecoin businesses, and distributed ledger participation. No more begging for regulatory blessing. No more demonstrating “adequate controls” before launching services. Just business as usual.
The OCC’s move is massive. These institutions control over two-thirds of all U.S. commercial bank assets. Community banks aren’t left out either—they’re included under the updated guidelines. This shift ensures consistent technology treatment regardless of whether activities involve traditional or crypto assets. The financial landscape just shifted. Dramatically.
A seismic shift that brings two-thirds of America’s banking assets into crypto’s orbit—no permission slip required.
This represents a complete 180-degree turn from the Biden administration’s cautious approach. The OCC explicitly rescinded the requirement for supervisory non-objection and withdrew from previous interagency statements that warned about crypto risks. Banks had been skeptical about servicing the crypto sector. Not anymore.
The timing isn’t random. This follows the U.S. government’s adoption of Bitcoin and certain altcoins as reserve assets, and aligns with the Trump administration’s Digital Asset Summit. Treasury Secretary Scott Bessent has been actively working to remove impediments to the industry. Wall Street wanted clarity. They got it.
What’s permitted now? Crypto custody, stablecoins, node verification networks, and distributed ledger technology for payments. The OCC expects the same risk management controls as with traditional activities—nothing special, nothing extra.
Markets are responding. Assets like XRP potentially stand to benefit, and new stablecoins like RLUSD might find easier paths to mainstream adoption. This regulatory shift will likely benefit both centralized exchanges and decentralized platforms as traditional banking services become more accessible to the crypto industry. The friction between traditional banking and the digital asset industry? Melting away.
The OCC will still supervise these activities, of course. They’re not abandoning oversight. But the message is clear: crypto and banking can mix. And regulators aren’t standing in the way anymore.
