The Thriving Merge of Tokenized Asset Space and TradFi Sector
Information Crucial for Cryptocurrency Investors Regarding the OCC's Shift in Cryptocurrency Banking Policies
As we barrel through 2025, the collusion of the tokenized asset world and TradFi sector is gaining steam, causing quite a stir. Notable incidents, even eclipsing some technical releases, include the formation of a strategic bitcoin reserve, altering tax treatment for cryptoassets, and a massive overhaul in crypto policy at the SEC. Yep, you guessed it. The OCC is still a powerhouse banking regulator in the U.S., holding the keys to engagement in certain banking activities.
Banks, unlike the nimble fintech sector that's growing like wildfire, have a well-defined regulatory framework and established processes for interacting with regulators. With a pro-crypto stance on the rise, they're clamoring for additional guidance as the landscape shifts.
Back to 2020, the Buzz around OCC's Interpretive Letter 1170
You might remember the OCC's 2020 publication, Interpretative Letter 1170, which dealt with the authority of banks to offer crypto-adjacent services to customers. It also reemphasized that banks looking to serve crypto clients and investors needed to apply the same risk management practices for crypto as they would for traditional assets.
Fast forward to March 2025, and the Acting Comptroller of the Currency dropped Interpretative Letter 1183. This new statement offered the clarity and specificity the TradFi sector has been craving to engage in crypto activities.
Navigating the Pro-Crypto Scene with Caution
With these changes, it's clear that the crypto sector has become too big to ignore. With a market cap in the trillions, increasing investment from TradFi institutions, and governments taking notice, everyone's jumping on the crypto bandwagon. For TradFi institutions, this presents opportunities for fees and expansions, targeting under-served demographics like Millennials and Gen-Z/Gen Alpha, who show high ownership rates in cryptocurrency.
Moving Together: OCC and FDIC Shaping the Future
Headlines about bitcoin reserves and digital asset stockpiles may dominate discussions, but policy adjustments by the FDIC are quietly reshaping the crypto landscape. In 2024, the FDIC issued a Notice of Proposed Rulemaking to reinforce and clarify the recordkeeping requirements for bank deposits held by non-bank companies. This will have a significant impact on crypto-adjacent payment services offered by non-bank firms, reshaping the industry.
The Ascent of Crypto Payments
Despite the boom in interest and investment in cryptocurrency, crypto payments are lagging behind wider investment flows. Hacks, security concerns, and price volatility have hindered widespread adoption. But with the new regulatory environment taking shape, crypto payments stand on the brink of unprecedented transparency, understanding, and safety.
With increasing crypto ownership among influential young generations, the future of crypto payments remains promising.
The OCC, in response to the growing interest of traditional banks in crypto assets, released Interpretative Letter 1183 in March 2025, reinforcing and clarifying guidance for banks to engage in crypto activities. Simultaneously, the FDIC, in 2024, issued a Notice of Proposed Rulemaking to reinforce and clarify recordkeeping requirements for bank deposits held by non-bank companies, aiming to reshape the crypto-adjacent payment services offered by these firms. As we approach 2025, the sluggish growth of crypto payments may soon be enhanced by the unprecedented transparency, understanding, and safety the new regulatory environment promises, potentially accelerating widespread adoption among Millennials and Gen-Z/Gen Alpha.
