Summary

The OCC issued Interpretive Letter 1183 to reaffirm that national banks and federal savings associations may engage in crypto-asset custody, stablecoin reserve holding, and distributed ledger payment activities. The letter rescinds the prior supervisory non-objection process established in Interpretive Letter 1179, moving these activities under standard ongoing supervisory oversight.

Interpretive Letter 1183

March 2025

OCC Letter Addressing Certain Crypto-Asset Activities

March 7, 2025

This letter rescinds Interpretive Letter 1179 (November 18, 2021). This letter also reaffirms that the crypto-asset custody, distributed ledger, and stablecoin activities (hereafter, “crypto-asset activities”) discussed in prior letters are permissible. Specifically, the OCC issued three interpretive letters in 2020 and early 2021 addressing whether it is permissible for national banks and federal savings associations (collectively, “banks”) to engage in crypto-asset activities. These interpretive letters are:

OCC Interpretive Letter 1170 (July 22, 2020), addressing whether banks may provide crypto-asset custody services;
OCC Interpretive Letter 1172 (September 21, 2020), addressing whether banks may hold dollar deposits serving as reserves backing stablecoins in certain circumstances; and
OCC Interpretive Letter 1174 (January 4, 2021), addressing whether banks may (1) act as nodes on an independent node verification network (i.e., a distributed ledger) to verify customer payments and (2) engage in certain stablecoin activities to facilitate payment transactions on a distributed ledger.

Since the issuance of Interpretive Letter 1179,¹ OCC staff have continued to develop knowledge and expertise regarding crypto-asset activities. Based on this supervisory experience, the OCC has determined that Interpretive Letter 1179 is no longer necessary. 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.

The OCC will examine the activities described in Interpretive Letters 1170, 1172, and 1174 as part of its ongoing supervisory process. As with any activity, banks must conduct all crypto-asset activities in a safe, sound, and fair manner and in compliance with applicable law. New activities should be developed and implemented consistent with sound risk management practices and align with banks’ overall business plans and strategies.

¹ Interpretive Letter 1179 outlined a supervisory nonobjection process for banks that seek to engage in the activities addressed in Interpretive Letters 1170, 1172, or 1174.

Common questions

What does "OCC Interpretive Letter 1183: Letter reaffirms that crypto-asset custody, holding deposits that serve as reserves backing stablecoins, and the use of distributed ledger technology and stablecoins to facilitate permissible payments activities are permissible for national banks and federal savings associations. It also rescinds Interpretive letter 1179, which outlined a supervisory non-objection process for the activities addressed in Interpretive Letters 1170, 1172 and 1174. Interpretive Letters 1170, 1172 and 1174 remain in effect. (3/7/2025)" cover?

The OCC issued Interpretive Letter 1183 to reaffirm that national banks and federal savings associations may engage in crypto-asset custody, stablecoin…

Which agency issued this update?

This update was issued by Office of the Comptroller of the Currency.

When was it published?

It was published on March 7, 2025.