news 
U.S banks can now legally handle crypto and stablecoins, says OCC
The Office of the Comptroller of Currency (OCC) has recently made it clear that U.S. banks are now free to engage in certain crypto-related activities, including custody of digital assets for customers, stablecoin payments, and running blockchain nodes. This move marks a significant shift in the regulatory landscape and could have far-reaching implications for the cryptocurrency sector.
According to the OCC, this decision aims to reduce the burden on banks to participate in these crypto-related activities and ensure that such actions are treated consistently by the agency. The agency has also rescinded prior guidelines that singled out crypto as a liquidity risk for the banking system.
Jeremy Allaire, Founder of Circle (USDC), expressed his enthusiasm about the development, stating that “banks using USDC. Coming soon to a blockchain near you. We are excited about wiring up the existing financial system to the new internet financial system.”
The decision is seen as a major positive development for the sector, as it allows banks to now participate in crypto-related activities without fear of regulatory retribution. Interestingly, this move is consistent with the pro-crypto shift that has been observed under the current administration.
Alexander Grieve, Head of Government Affairs at Paradigm, echoed similar sentiments, stating “OCC rescinds previous guidance that prevented banks from engaging in any crypto activity. Goodbye, Operation Chokepoint 2.0.”
Market watcher Marty Party believes that this move could have significant implications for the sector, noting that it would allow top chains to move trillions of dollars in stablecoins for banks. He also suggests that this development would dent Ripple’s control on banking ledger rails.
While some may be concerned about the potential risks associated with these developments, many believe that allowing U.S. banks to handle crypto and stablecoins will only serve to increase adoption and further legitimize cryptocurrencies as a viable alternative to traditional financial instruments.
In any case, it is clear that this move has sent shockwaves throughout the sector, with some of the top banks already expressing interest in offering crypto-related services, including custody for U.S spot Bitcoin ETFs – effectively becoming a direct competitor to Coinbase.
Source: https://ambcrypto.com/u-s-banks-can-now-legally-handle-crypto-and-stablecoins-says-occ/
