OCC Allows Banks to Engage in Crypto Activities as Trump Vows to End Operation Chokepoint 2.0

Highlights:

• OCC allows banks to offer crypto custody and stablecoin services without approval.
• OCC removes Biden-era crypto restrictions to boost innovation.
• Trump announced the end of Operation Chokepoint 2.0 and pledged to support crypto and position the US as a BTC leader.

On March 7, the Office of the Comptroller of the Currency (OCC) published Interpretive Letter 1183, which clarified that national banks and federal savings associations can now offer crypto custody and stablecoin services without prior regulatory approval. The OCC also allows banks to participate in certain DeFi activities, including independently verifying nodes for blockchain protocols. These entities can carry out these activities under existing banking laws.

The OCC said:

“Crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations.”

The guidance removes the previous requirement for OCC-supervised institutions to seek supervisory nonobjection” before engaging in crypto activities. Banks must have strong risk management controls, just like traditional banking operations. 

Acting Comptroller of the Currency Rodney E. Hood stated that the decision reduces the burden on banks engaging in crypto activities. It also ensures the OCC treats these activities consistently, regardless of the technology. 

Ok some pro-crypto guidance now rolling out post-WH Summit:@USOCC rescinds previous guidance that prevented banks from engaging in any crypto activity.

Goodbye, Operation Chokepoint 2.0https://t.co/trIJeUo2Aa

— Alexander Grieve (@AlexanderGrieve) March 7, 2025

OCC Eases Crypto Rules and Removes Biden-Era Restrictions

The agency said its staff now have a better understanding of crypto. It aims to ease earlier strict rules to encourage innovation and transparency. On Friday, the OCC removed guidance from the Biden administration that added extra steps for banks dealing with crypto. The old rules required banks to inform supervisors, explain risk management plans, and get approval before starting crypto activities.

The OCC also withdrew joint statements from U.S. regulators that had warned banks about crypto. A 2023 statement didn’t ban crypto but highlighted its volatility and warned that banks’ crypto activities would be closely monitored.

Trump Pledges to End Operation Chokepoint 2.0

OCC’s came just hours after Trump told crypto executives at the White House Crypto Summit that he is ending Operation Chokepoint 2.0, a policy that restricted financial services for crypto firms. President Trump promised to support crypto and make America a “Bitcoin superpower” at the crypto summit on March 7.

He promised to reverse restrictive policies and establish the US as a leader in digital assets. He said his executive order creating a Bitcoin reserve and digital assets stockpile fulfills his earlier promises.

Trump claimed the Biden administration targeted the crypto industry and declared the official termination of Operation Chokepoint 2.0. He criticized regulators and Biden, saying their policies caused real harm. He also accused them of easing restrictions only because of the upcoming election.

Trump stated:

 “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.” 

Trump said regulators pressured banks to close crypto businesses. He added that they blocked money transfers to and from exchanges.

Donald Trump said:

“But I know that feeling also, maybe better than you do; all that will soon be over.”

US Treasury Secretary Scott Bessent, overseeing the Bitcoin reserve, criticized Biden’s crypto policies. He claimed Biden harmed US tech innovators. Bessent stated that the Trump administration is collaborating with the IRS to eliminate previous regulations that restricted the industry.