OCC Eases Compliance for Banks Amid Crypto Concerns

According to CoinDesk, the Office of the Comptroller of the Currency (OCC) has announced that U.S. national banks will no longer need to address how controversial customers might impact their reputations. This decision, revealed in a statement on Thursday, removes a factor that had been criticized by cryptocurrency companies and insiders, who argued it contributed to their debanking. The OCC is eliminating this consideration from its supervision handbook, emphasizing that its examination process is focused on ensuring appropriate risk management for bank activities rather than assessing public opinion. Acting Comptroller of the Currency Rodney Hood stated, “The OCC’s examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion.” This move aligns with a similar commitment made by Federal Reserve Chair Jerome Powell during a congressional hearing last month, where he indicated that the Fed would also remove this category of scrutiny from its internal supervision manuals. The OCC has been actively working to simplify the compliance process for banks involved in cryptocurrency businesses. Recently, it rescinded earlier guidance that required banks to obtain written pre-approval from the agency before engaging in digital asset business lines. This regulatory shift is part of a broader effort to facilitate the integration of cryptocurrency operations within the traditional banking sector. In related developments, the OCC may soon have a permanent leader, as U.S. President Donald Trump's nominee, Jonathan Gould, is set to face a Senate confirmation hearing next week. The head of the OCC holds significant authority, operating as the sole decision-maker without needing approval from a commission or board, which allows for more swift and decisive actions compared to other financial regulators.