## Exciting News for the Crypto Industry: U.S. Banks Can Now Store Crypto Assets
In a significant advancement for the crypto sector, the U.S. Office of the Comptroller of the Currency (OCC) has empowered U.S. banks to store crypto assets, participate in stablecoin operations, and process payment transactions utilizing distributed ledger technology (DLT). This regulatory change, announced on Friday, opens the door for a potential influx of institutional investment, which could lead to substantial adoption and growth for major crypto assets such as XRP, Ethereum, Bitcoin, Cardano, and others.
Historically, the OCC, the primary regulator of national banks, has varied in its approach to crypto, influenced by changes in leadership. During President Trump’s first term, policies favorable to crypto thrived, especially under Brian Brooks’ leadership, which encouraged institutional engagement. However, this momentum faced setbacks under Michael Hsu, who implemented stricter regulations on digital assets. With a pro-crypto administration now in place, the latest announcement indicates a return to a supportive stance towards blockchain technology.
By removing the necessity for banks to seek special approvals for crypto-related activities, the OCC has simplified the pathway for financial institutions to adopt blockchain solutions. “This letter reaffirms that crypto-asset custody, distributed ledger, and stablecoin activities discussed in prior letters are permissible,” stated acting OCC Chair Rodney Hood in the announcement. “This rescission is intended to reduce burden, encourage responsible innovation, and enhance transparency. The rescission will also ensure that bank activities will be treated consistently, regardless of the underlying technology.”
This policy shift could be particularly transformative for XRP and Ripple, whose XRP Ledger (XRPL) is tailored for high-speed, low-cost cross-border transactions. Ripple’s recent introduction of the RLUSD stablecoin aligns perfectly with the OCC’s pro-crypto position, making XRP an appealing choice for banks aiming to incorporate blockchain-based payment solutions. With financial institutions now authorized to hold and manage digital assets, XRPL adoption could see a significant increase, enhancing XRP’s utility and demand.
Ethereum and Bitcoin are also poised to gain from this development. Ethereum’s robust smart contract ecosystem may experience heightened institutional adoption as banks investigate blockchain-driven financial products. Meanwhile, Bitcoin’s status as a store of value could be reinforced under clearer regulatory frameworks for bank custody and transactions.
The OCC’s decision is part of a broader federal initiative to embrace crypto. President Trump’s recent executive order on digital assets highlights a pro-blockchain approach, while his nomination of Jonathan Gould, a former Bitfury lawyer, to lead the OCC suggests a continuation of policies that favor blockchain innovation. Additionally, major financial institutions are already reacting to this shift. Bank of America is preparing to launch a stablecoin on Ethereum, showcasing the network’s growing relevance in the evolving financial landscape.
