The US Office of the Comptroller of the Currency (OCC) has eased its stance on how banks can engage with crypto just hours after US President Donald Trump vowed to shut down Operation Chokepoint 2.0 — the prolonged crackdown restricting crypto firms’ access to banking services.
“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 OCC said in a March 7 statement.
OCC’s new guidance will “reduce the burden” on banks
The OCC confirmed in a document titled Interpretive Letter 1183 that OCC-supervised financial institutions no longer need “supervisory nonobjection” to engage with crypto-related activities.
“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,” Acting Comptroller of the Currency Rodney E. Hood said.
The agency said it made the decision because OCC staff now have a better grasp of crypto and want to roll back its earlier stringent rules to “encourage responsible innovation and enhance transparency.”
While the industry has welcomed the OCC’s recent letter, Custodia Bank founder and CEO Caitlin Long said in a March 7 X post that Operation Chokepoint 2.0 “isn’t over” until the US Federal Reserve and the Federal Deposit Insurance Corporation also rescind their “anti-crypto guidance.”
It comes just hours after Trump told a room full of crypto executives at the White House Crypto Summit on March 7 that he is “ending Operation Chokepoint 2.0.”
“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.
Operation Chokepoint 2.0 “strong-armed banks”
Operation Chokepoint 2.0 widely impacted the industry in multiple countries and was a significant pain point for industry advocacy groups during the 2024 United States election.
“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,” Trump said.
“But I know that feeling also, maybe better than you do; all that will soon be over.”
Many crypto firms turned to stablecoins to finance their operations after losing their business accounts at traditional banking institutions during the debanking operation.
Related: The lessons learned at Operation Chokepoint 2.0 Congressional hearings
On Jan 16, Wyoming Senator Cynthia Lummis sent a letter to the FDIC, claiming that whistleblowers informed her that the agency allegedly destroyed documents related to Operation Chokepoint 2.0.
“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,” she said at the time.
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