Anchorage Digital Gets OCC's Clean Bill of Health

Anchorage Digital Cleared by OCC, Consent Order Terminated

Anchorage Digital, a federally chartered digital asset bank, has received positive news from the Office of the Comptroller of the Currency (OCC). The OCC has terminated its cease and desist consent order, initially issued in 2022.

The original order stemmed from concerns about the bank's compliance program, specifically regarding the Bank Secrecy Act and anti-money laundering (AML) requirements. The OCC now believes Anchorage Digital has addressed these issues, stating that the bank's "safety and soundness...does not require the continued existence of the order."

Anchorage Digital secured conditional approval from the OCC in 2021, becoming the first federally chartered bank to custody digital assets. This regulatory milestone was initially seen as challenging.

Executive Perspective

Nathan McCauley, co-founder and CEO of Anchorage, commented on the significance of this development. He highlighted the initial skepticism surrounding the intersection of digital assets and regulation but emphasized the company's commitment to building a secure and compliant foundation for the industry.

Industry Impact

Anchorage Digital's services include custody, staking, trading, and governance. Notably, BlackRock selected Anchorage to custody portions of its Bitcoin and Ethereum holdings for its spot ETFs earlier this year.

Regulatory Landscape Shifting?

Recent developments suggest a potentially evolving regulatory landscape. The OCC has affirmed that national banks can buy, sell, and manage custodied crypto assets. Stablecoin issuer Paxos, along with Ripple and Circle, have recently applied for national bank charters.

Key Takeaways:

• The OCC has terminated its consent order against Anchorage Digital, signifying improved compliance.
• Anchorage Digital was the first federally chartered bank to custody digital assets.
• The company's CEO emphasizes the importance of regulatory compliance for the long-term health of the crypto industry.
• Other firms like Paxos, Ripple, and Circle are pursuing national bank charters, indicating growing interest in regulated crypto banking.