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US regulator clears path for banks to engage in some crypto activities

The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidelines that allow banks to engage in certain cryptocurrency-related activities, marking a significant shift in regulatory stance towards digital assets. The guidance clarifies that banks can hold deposits that facilitate customers' participation in blockchain networks, issue stablecoins, and engage in activities like trading, lending, and custody services for cryptocurrencies, provided they adhere to strict risk management practices. This move aims to integrate cryptocurrencies more formally into the banking system while ensuring that banks manage the associated risks effectively. The OCC's decision reflects a broader trend of regulatory bodies warming up to digital currencies, although it emphasizes the need for banks to maintain robust compliance and risk management frameworks to mitigate potential issues like fraud, money laundering, and market volatility.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/companies/us-regulator-clears-path-for-banks-to-engage-in-some-crypto-activities/ar-AA1AtVNG ]