The federal banking regulators have each recently adopted a more permissive approach to the regulation of cryptocurrency activities within the banking sector. The Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve System (FRB) have issued new guidance that relaxes previous restrictions and requirements for banks engaging in crypto-related activities. The three agencies have also withdrawn two interagency statements, the Joint Statement on Crypto-Asset Risks to Banking Organizations (3 January 2023) and the Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities (23 February 2023).

The OCC’s recent Interpretive Letter 1183, dated 7 March 2025, rescinds the earlier Interpretive Letter 1179, which had outlined a supervisory non-objection process for banks engaging in crypto-asset activities. This restores the prior regulatory regime for national banks and federal savings associations and such federally-chartered institutions will no longer be required to receive the OCC’s non-objection prior to engaging in such digital asset activities. The OCC reaffirmed that crypto-asset custody, distributed ledger, and stablecoin activities are permissible for national banks and federal savings associations, as previously discussed in Interpretive Letters 1170, 1172, and 1174. The OCC emphasizes that banks must conduct these activities in a safe, sound, and fair manner, adhering to applicable laws and sound risk management practices.

Similarly, the FDIC has issued new guidance, dated 28 March 2025, which rescinds the prior notification requirement established by FIL-16-2022 for FDIC-supervised institutions wishing to engage in crypto-related activities. The new guidance clarifies that these institutions may engage in permissible crypto-related activities without prior FDIC approval, provided they adequately manage associated risks. The FDIC’s approach aligns with the OCC’s stance, allowing banks to explore new and emerging technologies, including crypto-assets and digital assets, while ensuring compliance with consumer protection and anti-money laundering requirements. The FDIC stated it would work with the OCC and Federal Reserve to replace the interagency statements on crypto-activities.

On 24 April 2025, the FRB rescinded SR 22-6 which required state member banks to provide advance notice of crypto activities and SR 23-8 establishing a supervisory nonobjection process for state member bank engagement in dollar token activities.

State-chartered banks are generally prohibited from engaging in activities that are not permissible for national banks, so the OCC’s recission of Interpretive Letter 1179 removes one hurdle for state-chartered banks engaging in crypto-activities. The FDIC and FRB have removed another hurdle in no longer requiring prior nonobjection. All three of the federal banking regulators are expected to continue to work with the President’s Working Group on Digital Asset Markets and further guidance is needed to address issues not covered in the guidance discussed above, such as the ability of banks to hold crypto-assets other than stablecoins on balance sheet or lend crypto-assets.