- Banks can now handle stablecoins, crypto custody, and distributed ledgers
- Market watchers believe this is a massive and long tailwind update for the sector
Oh, la la! U.S. banks are now positively frolicking in the fields of cryptocurrency! Yes, dear readers, they are free to engage in all manner of delightful crypto activities, from custody of digital assets (because who wouldn’t want to cuddle a Bitcoin?) to stablecoin payments and even running those fancy blockchain nodes. How modern!
This merry news, of course, strutted its way out of the hallowed halls of the OCC (Office of the Comptroller of Currency), the esteemed gatekeepers tasked with ensuring our banks play nice and safe.
Rodney E. Wood, a dapper exec from OCC, chimed in a manner only a true bureaucrat can:
“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, regardless of the underlying technology.”
Now, let’s not gloss over the past! The OCC also waved goodbye to previous guidelines that painted crypto as the big bad wolf of liquidity risk in the banking system. So, should we send a thank you note?
Market reactions
As news spread like gossip at a tea party, Jeremy Allaire, the Founder of Circle (USDC), declared with an enthusiasm reminiscent of a child at a candy store:
“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 whole charade of ‘Operation ChokePoint 2.0,’ which led to some rather sad rejections in the crypto world, is now taking a backseat to this new pro-crypto fiesta, courtesy of none other than the new Trump administration. Who knew we’d be discussing digital currencies over cocktails with political implications?
Alongside the OCC’s revelation, other charmer agencies like the SEC and the FDIC have taken an amiable stance towards crypto. Alexander Grieve from Paradigm chimed in, echoing the same jubilant sentiment:
“OCC rescinds previous guidance that prevented banks from engaging in any crypto activity. Goodbye, Operation Chokepoint 2.0.”
Marty Party, our dear market watcher, had a cheeky observation about the whole affair, noting that this glorious new guidance might just let top chains shuffle trillions of dollars (stablecoins, if you please) for our banks. One could say Ripple‘s sturdy grip on the banking ledger is suddenly looking a tad shaky!
“This also dents Ripple’s $XRP effort to monopolize the banking ledger rails. Win-win. Huge news.”
And so, the spotlight beams brightly on the rising embrace of blockchain and stablecoins within the plush embraces of traditional finance. Can you hear the whispers of banks like JPMorgan, Goldman Sachs, and BNY Mellon gazing longingly at crypto offerings? Yes, my darlings, even they are eyeing custody for U.S. spot Bitcoin ETFs—a not-so-subtle jab at our dear friend Coinbase!
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2025-03-08 13:33