- The responsible federal authority has significantly simplified the corresponding requirements for the commercial banks, so that they can now offer their customers these services profitably.
- The Trump government has further strengthened trust in cryptocurrencies by completing the “Operation Chokepoint 2.0” and establishing a strategic crypto reserve.
The US banks from the OCC (Office of the Comptroller of the Currency), the the national banks supervisedget a clear signal to continue investing in cryptocurrencies. On Friday, the OCC made it easier for the banks to store cryptocurrencies, the processing of stablecoin transactions and the operation of 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
Before that, due to strict requirements, this was hardly profitable for the financial institutions. The banks had to obtain approval, present detailed risk plans and teach the supervisory authorities before they were able to do cryptocurrency transactions. The recent decision of the OCC eliminates these hurdles. The reigning compatroller of the Currency Rodney E. Hood explained:
“The OCC expects the banks to set up the same strict risk management controls as for traditional activities to support new banking activities”,
Trumps Krypto-Boost
This update reveals earlier joint explanations from US regulators. In these earlier warnings, cryptocurrencies were not prohibited, but described as very risky and the banks warned that their crypto transactions would be observed closely. This decision signals a significant liberalization of the Federal Government’s attitude towards cryptocurrencies.
On the same day, President Donald Trump took further measures to strengthen trust in cryptocurrencies. At the crypto summit in the White House, he signed an order to create a strategic reserve for Bitcoin and other digital currencies. He also explained the official end of the “Operation Chokepoint 2.0”, a policy that removed banks from crypto shops.
Trump sharply criticized this operation because it damaged legitimate crypto companies. He claimed: “It was ended because of the votes, not for the right reasons”, which indicates political motives behind the hard editions for crypto banking. This change in politics shows a more positive attitude towards cryptocurrencies in Washington and marks an important change of direction.
Reaction of the industry
The financial sector welcomed these announcements on the whole. However, some voices in the industry warn as caution. Caitlin Long, head of Custodia Bank, tweeted on March 7 and reminded the participants that the battle has not yet been fully won. Operation Chokepoint 2.0 has only ended if the US Federal Reserve and the FDIC canceled its “anti-crypto guidelines”, warned it.
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 the positive developments, the banks are not quite over the mountain. You still need robust systems to adhere to compliance with the strict anti-money laundering and know-your-customized pads. Ensuring this compliance framework is an essential step for the safe integration of cryptocurrencies into traditional banking operations.
Overall, the regulatory update marks a significant leap forward for cryptocurrencies in the traditional banking sector. It paves the way for deeper integration and wider acceptance of digital currencies and significantly changes the financial landscape. The banks are now at the threshold of a new era and confidently enter into the future of financial system.
