JPMorgan, Goldman Sachs and BNY Mellon Authorized to Operate Cryptos and Stablecoins, OCC Announces
- OCC allows US banks to operate with cryptocurrencies and stablecoins.
- Repeal of 'Operation ChokePoint 2.0' facilitates financial integration.
- Major US banks prepare to expand cryptocurrency services.
US banks have been given the green light to expand their operations in the cryptocurrency space, including custody of digital assets and handling payments with stablecoins. The decision, released by the Office of the Comptroller of the Currency (OCC), marks a new phase of integration between traditional finance and blockchain technology.
Rodney E. Wood, OCC executive, highlighted the importance of the measure : “Today’s action will reduce the burden on banks to engage in cryptocurrency-related activities and ensure that such banking activities are treated consistently by the OCC, regardless of the underlying technology.”
Previously, the agency's own guidelines categorized cryptocurrencies as a liquidity risk to the financial system, a view now revoked, paving the way for a more open and regulated stance for the sector.
The market response was immediate and bullish. Jeremy Allaire, founder of Circle, which is responsible for USDC, one of the most traded stablecoins, commented on the new integration possibility: “Banks using USDC. Coming soon to a blockchain near you. We are excited to connect the existing financial system to the new financial system of the internet.”
The change in policy also ends 'Operation ChokePoint 2.0', which aimed to limit banks' access to the crypto sector, ushering in an era of restrictions that is now over.
Alexander Grieve, Head of Government Affairs at Paradigm, highlighted the significance of the update: “OCC revokes previous guidance that barred banks from engaging in any crypto activity. Goodbye, Operation Chokepoint 2.0.”
Market observer Marty Party highlighted the potential impact of the decision on the traditional banking industry: “This also undermines Ripple’s $XRP effort to monopolize the banking ledger rails. Win-win. Great news.”
This openness by the OCC is in line with similar moves by other regulatory agencies, such as the SEC and the FDIC, reflecting a trend towards acceptance and regulation of cryptocurrencies and stablecoins in traditional financial systems.
Major banks like JPMorgan, Goldman Sachs and BNY Mellon are already eyeing expanding their crypto offerings, including custody of spot Bitcoin ETFs in the US, showing that competition with established crypto platforms like Coinbase is just beginning.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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