The U.S. Office of the Comptroller of the Currency (OCC) recently made a significant decision that has far-reaching implications for the crypto industry. The OCC announced that it has officially ended a 2022 consent order against Anchorage Digital, a crypto-native custodian and bank. This move comes after more than three years, with the OCC stating that the safety and soundness of the bank no longer require the continuation of the order.
Anchorage CEO Nathan McCauley expressed his excitement about this development, calling it a key milestone for both the company and the broader crypto industry. He emphasized that the lifting of the consent order demonstrates that crypto and federal oversight can coexist harmoniously. McCauley highlighted that Anchorage has set a new standard for federally-chartered custody of digital assets.
The consent order against Anchorage was initially issued in April 2022 due to the company’s failure to adopt and implement a compliance program that met the expectations of the Bank Secrecy Act and Anti-Money Laundering standards. Acting Comptroller Michael Hsu underscored the importance of regulatory compliance for all nationally chartered banks, regardless of their involvement in traditional or innovative activities.
While Anchorage did not admit or deny the OCC’s findings at the time, the company acknowledged that it had been working to strengthen the identified areas and enhance its internal BSA/AML controls and procedures. This was a critical test for Anchorage, which had made history by becoming the first crypto-native company to receive a national bank charter from the OCC in 2021.
Reflecting on the company’s journey since securing the charter, McCauley expressed determination and resilience in overcoming challenges. He noted that the seemingly impossible mission of obtaining a federal charter had motivated Anchorage to push boundaries and excel in the crypto custody space.
The OCC, along with other regulatory bodies such as the Federal Reserve and the FDIC, has shown a more lenient attitude towards crypto activities in recent years. Acting Comptroller Rodney Hood has acknowledged the transformative potential of crypto and emphasized the importance of responsible engagement by federally chartered banks. The Federal Reserve has removed the requirement for state banks to seek prior approval for crypto-related activities, while the FDIC has clarified that banks can participate in the digital asset sector without upfront agency consent.
Overall, the lifting of the consent order against Anchorage Digital marks a significant milestone for the company and the crypto industry as a whole. It showcases the potential for collaboration between traditional financial institutions and the emerging crypto ecosystem, paving the way for further innovation and growth in the sector.