The U.S. Currency Secretary (OCC) has eased his stance on how banks can engage with crypto just hours after US President Donald Trump vowed to suspend Operation Chokepoint 2.0.
“National Banks and the Federal Savings Association are permitted to participate in independent node verification networks such as crypto protection, specific stubcoin activities, and distributed ledgers,” the OCC said in a statement on March 7th.
OCC’s new guidance will “reduce the burden” of banks
The OCC was confirmed in a document entitled Interpretation Document 1183. The OCC teachers’ financial institutions have confirmed that they no longer need “non-rejection of supervision” to engage in crypto-related activities.
“Today’s actions ease the burden on banks engaged in crypto-related activities and ensure that these bank activities are handled consistently by the OCC.”
Source: Alexander Grieve
The agency said it made the decision because OCC staff understands cryptography better and wants to roll back previous strict rules to “encourage responsible innovation and increase transparency.”
The industry is welcoming OCC’s recent letter, but in a March 7 X post, Custodia Bank founder and CEO Cea Long said the Chokepoint 2.0 operation will not be “ends” until the US Federal Reserve and Federal Deposit Insurance Corporation withdraw “anti-crypto guidance.”
Source: Anchorage Digital
It comes just hours after Trump said he “ends Operation 2.0” in a room full of crypto executives at the White House Crypto Summit.
“Some people were really struggling. It was ridiculous what they were doing. In the end, they came, but they came for the wrong reasons, just because they wanted a vote,” Trump said.
Operation Chalk Point 2.0 “Strong Armed Bank”
The Chokepoint 2.0 operation has had a wide impact on industries across multiple countries and was a key issue for industry advocacy groups during the 2024 US election.
“They were strongly armed with banks to shut down crypto businesses and entrepreneurs, effectively blocking remittances with exchanges and weaponizing governments to and from the industry,” Trump said.
“But I might feel better than you, perhaps. It’s all over.”
Many crypto companies have resorted to stubcoin to cover their business after losing business accounts at traditional banking institutions during decommissioning.
Related: Lessons learned at Operation Chalk Point 2.0 Congressional hearing
On January 16, Wyoming Sen. Cynthia Ramis wrote to the FDIC, claiming that the whistleblower was said to have destroyed documents related to Operation Chokepoint 2.0.
“If it becomes clear that you or your staff have deliberately destroyed the material or attempted to interfere with the Senate’s oversight function, I will give a prompt criminal referral to the U.S. Department of Justice,” she said at the time.
Magazine: SEC U-turn on Crypto leaves important questions unanswered
