OCC Withdraws Consent Order Against Anchorage Digital

The Office of the Comptroller of the Currency (OCC) has revoked its consent order against Anchorage Digital, a federally chartered crypto bank in the U.S. Initially issued in 2022 under the Biden administration due to concerns over the bank's anti-money laundering (AML) program and know your customer (KYC) practices, the order is no longer deemed necessary. On Thursday, the OCC stated that Anchorage Digital's safety, soundness, and compliance do not warrant the order's continuation. In recent months, there has been a notable shift in regulatory stance toward cryptocurrency, with agencies, including the OCC, adopting a more favorable outlook. The Federal Reserve has also retracted prior guidance discouraging banks from engaging in crypto-related activities. This shift was further underscored by a joint statement released last month by both the Federal Reserve and the OCC, clarifying how existing regulations apply to banks managing crypto assets on behalf of customers. Anchorage Digital, described by CEO Nathan McCauley as having a "nearly five-year head start in becoming the best," has developed into the world's most regulated digital asset bank. McCauley noted that the bank invested heavily in compliance and product development, setting industry standards over the past 1,681 days. The bank has actively engaged with regulators, addressing their feedback to ensure robust compliance. In light of the more favorable regulatory environment, several crypto firms, such as Paxos, BitGo, Ripple, and Circle, have recently pursued national trust charters. McCauley expressed his readiness for the increasing competition, maintaining that collaboration is essential in the crypto sector. Disclaimer: This article is for informational purposes only and should not be construed as legal, financial, or investment advice.