OCC Presents Crypto Banking After Trump Announces End to Operation Chokepoint 2.0

The Office of the Comptroller of the Currency (OCC) has just adjusted its stance on how banks can engage in Bit, stating that national banks and federal savings associations will be allowed to engage in Bit custody, independent node verification networks like Distributed Ledger, and certain Stablecoin activities. The OCC has confirmed in a document titled Interpretive Letter 1183 that financial institutions supervised by the OCC no longer need "non-objection" to engage in Bit-related activities. This decision comes after OCC staff gained a deeper understanding of the Bit industry and wanted to remove previous strict regulations to "encourage responsible innovation and enhance transparency" in the industry. While the industry welcomes the OCC's recent letter, Custodia Bank founder and CEO Caitlin Long stated on X on March 7 that Operation Chokepoint 2.0 is not yet "over" until the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) rescind their "anti-Bit guidance". This event occurred just hours after Donald Trump stated at the White House Bit Summit that he would "end Operation Chokepoint 2.0". Many Bit companies have turned to Stablecoins to fund their operations after losing their business accounts at traditional banking institutions during the banking disruption. On January 16, U.S. Senator from Wyoming Cynthia Lummis sent a letter to the FDIC, criticizing the agency for destroying documents related to Operation Chokepoint 2.0.