OCC Terminates Anchorage Digital AML Consent Order in 2025

Regulatory Relief for First US Crypto Bank Charter Holder

The Office of the Comptroller of the Currency (OCC) has officially terminated a consent order imposed against Anchorage Digital in 2022, marking a significant regulatory milestone for the cryptocurrency custody bank. The Thursday announcement represents a major victory for the first US-based crypto company to receive a national bank charter.

Background of the Original 2022 Consent Order

The OCC initially issued the consent order in April 2022 due to Anchorage Digital's failure to adopt and implement proper Anti-Money Laundering (AML) compliance programs. The regulatory action was designed to ensure the safety and soundness of the digital asset custody bank's operations.

The original enforcement action highlighted gaps in Anchorage's compliance framework, requiring the company to strengthen its AML procedures and risk management systems to meet federal banking standards.

OCC Cites Improved Compliance as Reason for Termination

In its latest notice, the OCC stated that Anchorage Digital's compliance with laws and regulations no longer requires the continued existence of the consent order. The regulator expressed confidence in the bank's current compliance posture and operational framework.

The termination signals that Anchorage has successfully addressed all regulatory concerns raised in the original order, demonstrating its ability to operate as a federally-chartered institution while maintaining proper oversight of digital asset custody services.

Anchorage Digital CEO Responds to Order Termination

Nathan McCauley, co-founder and CEO of Anchorage Digital, celebrated the regulatory milestone in a blog post. He emphasized that the company has proven crypto and federal oversight can work effectively together.

McCauley highlighted how Anchorage resolved regulatory feedback while setting standards for federally-chartered custody of digital assets. The CEO positioned the order termination as validation that cryptocurrency businesses can operate successfully under federal banking regulations.

Historic Significance of Anchorage Digital's Charter

Anchorage Digital made history in January 2021 as the first US-based cryptocurrency company to receive a national bank charter from the OCC. This groundbreaking approval occurred during the final days of the Trump administration's first term.

The company's charter represented a watershed moment for crypto industry legitimacy, providing a regulatory pathway for digital asset custody services within the traditional banking framework.

Current Leadership Changes at OCC

The regulatory landscape has shifted with recent leadership changes at the OCC. In July 2024, the US Senate confirmed Jonathan Gould, former chief legal officer of Bitfury, to head the regulatory agency under the current Trump administration.

Gould's background in cryptocurrency and blockchain technology suggests a potentially more crypto-friendly regulatory approach compared to previous administrations.

Broader Crypto Regulatory Trends Under Trump Administration

The termination of Anchorage's consent order reflects a broader softening of crypto enforcement and regulation under the current administration. Federal agencies have begun reassessing their approach to digital asset oversight.

The Federal Reserve announced in August 2024 that it would sunset a program specifically designed to monitor banks' digital asset activities. This move indicates reduced regulatory scrutiny of traditional financial institutions engaging with cryptocurrency services.

Joint Agency Statement on Crypto Custodial Risks

The OCC, Federal Reserve, and Federal Deposit Insurance Corporation issued a joint statement in July 2024 clarifying risks associated with banks holding digital assets for clients. This guidance aimed to provide clearer regulatory expectations for financial institutions.

The joint statement represents ongoing efforts by federal banking regulators to establish comprehensive frameworks for digital asset custody and banking services.

Other Crypto Companies Seeking Federal Charters

Several major cryptocurrency companies are pursuing national trust bank charters from the OCC, including Paxos, Ripple Labs, and Circle. These applications demonstrate growing industry interest in federal regulatory approval.

The success of Anchorage Digital's charter and recent order termination may encourage other crypto companies to pursue similar federal banking relationships.

GENIUS Act Creates New Licensing Pathways

The GENIUS Act, signed into law in July 2024, established new regulatory pathways for payment stablecoin companies. Under this legislation, the OCC and qualifying state regulators will offer licensing opportunities for crypto companies.

This new legal framework provides additional regulatory clarity for digital asset businesses seeking federal oversight and legitimacy.

Industry Implications of Regulatory Shift

The termination of Anchorage Digital's consent order signals potential changes in federal crypto regulation. Industry observers view this development as evidence of increased regulatory acceptance of properly managed cryptocurrency businesses.

The move may encourage other crypto companies to engage more actively with federal regulators, potentially leading to expanded digital asset banking services under federal oversight.

Future Outlook for Crypto Banking

Anchorage Digital's regulatory success establishes a precedent for other cryptocurrency companies seeking federal banking charters. The company's ability to resolve compliance concerns demonstrates that crypto businesses can meet traditional banking standards.

The combination of favorable regulatory leadership, supportive legislation, and successful compliance examples creates an increasingly positive environment for crypto banking innovation in the United States.

For more Crypto, Web3, Blockchain & AI news visit : www.metamoonmedia.com