OCC Lifts Consent Order on Anchorage Digital
In a significant update from the US financial regulatory landscape, the Office of the Comptroller of the Currency (OCC) has announced the lifting of a consent order previously imposed on Anchorage Digital, a cryptocurrency custody bank. This move, which comes as part of the OCC’s ongoing efforts to ensure institutional integrity within the cryptocurrency sector, was detailed in a notice released on Thursday.
Background of the Consent Order
The OCC’s original order, issued in April 2022, was a response to Anchorage’s shortcomings in establishing a comprehensive compliance program in line with Anti-Money Laundering (AML) regulations. However, officials noted that with the bank’s improved compliance efforts, there was no longer a need for the consent order to remain in effect.
Reactions from Anchorage Digital
Co-founder and CEO Nathan McCauley expressed optimism regarding this development in a blog post. He emphasized that the successful resolution of regulatory feedback demonstrates that federal oversight and cryptocurrency governance are compatible and even mutually beneficial. “With our consent order lifted, we’ve proven definitively that crypto and federal oversight are not mutually exclusive—and can, in fact, be stronger working in tandem,” McCauley stated.
Significance of the Update
It’s noteworthy that Anchorage Digital made headlines in January 2021 by becoming the first American crypto firm to secure a national bank charter from the OCC during President Joe Biden’s administration, amid a changing regulatory environment. The regulatory landscape has seen shifts since the Trump administration, which cast a complicated shadow over how cryptocurrencies were treated under US law.
The recent termination of the consent order aligns with the emerging trend of regulatory leniency towards cryptocurrency companies, as evidenced by the Federal Reserve announcing in August plans to discontinue a program aimed at monitoring banks’ digital asset engagements. Additionally, a joint statement from the OCC, the Federal Reserve, and the Federal Deposit Insurance Corporation issued in July delved into the risks associated with banks managing digital assets on behalf of clients.
Future of Cryptocurrency Regulation
Other firms such as Paxos, Ripple Labs, and Circle are also navigating the path toward obtaining national trust bank charters from the OCC. Recent legislative measures, like the GENIUS Act, pave the way for crypto company licenses concerning payment stablecoins, indicating an evolving regulatory framework for digital assets in the U.S.
