Crypto among sectors ‘debanked’ by 9 major banks: US regulator

The Office of the Comptroller of the Currency (OCC) has raised significant concerns regarding the practice of crypto debanking among nine major banks, including JPMorgan Chase and Bank of America, highlighting a potential resurgence of restrictive measures against the cryptocurrency sector. This supervisory review has sparked fears of a new wave of regulatory actions reminiscent of 'Operation Chokepoint 2.0.'

The Office of the Comptroller of the Currency (OCC) has issued a warning to Wall Street regarding the practice of 'debanking' certain industries, particularly those involved with digital assets, labeling such actions as unlawful. The OCC has indicated it will take action against any recurrence of these practices.

On Tuesday, the price of Ethereum surged by 6.5%, reaching the significant $3,300 mark for the first time in nearly a month, marking a nearly 12% recovery over the past week. This increase has positioned Ethereum ahead of its competitors among the top ten cryptocurrencies by market capitalization. Analysts attribute this rise to heightened institutional interest, particularly from major players like BitMine, which holds a substantial collection of ETH.

The Office of the Comptroller of the Currency (OCC) has confirmed that national banks in the U.S. are allowed to act as intermediaries in cryptocurrency transactions, specifically through riskless principal transactions. This clarification marks a significant regulatory step in the evolving landscape of digital assets.

The Office of the Comptroller of the Currency (OCC) has authorized national banks in the United States to engage in 'riskless principal transactions' involving cryptocurrencies, as outlined in Interpretive Letter 1188. This marks a significant regulatory shift, allowing banks to facilitate crypto transactions without assuming risk.

Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC), stated that there is no justification for treating banks and cryptocurrency companies differently, advocating for a pathway for crypto firms to be supervised within the banking system. This perspective aligns with the OCC's ongoing efforts to integrate cryptocurrency into traditional banking frameworks.