OCC Lifts 2022 Consent Order Against Anchorage Digital

The U.S. Office of the Comptroller of the Currency (OCC) has officially rescinded a consent order against Anchorage Digital, a crypto-focused custodian and bank, that had been in effect since 2022.

Key Takeaways

The OCC has ended a 2022 consent order against Anchorage Digital, deeming it no longer necessary for compliance.
Anchorage's CEO, Nathan McCauley, believes this decision shows that cryptocurrency can coexist with federal oversight.
The original order was due to compliance failures with the Bank Secrecy Act and Anti-Money Laundering standards.
The OCC has been historically cautious about digital assets but has softened its stance under recent administrations.
Other financial regulators, including the Federal Reserve and the FDIC, have made it easier for banks to engage in cryptocurrency activities.

OCC terminates 2022 consent order against Anchorage Digital

Following a comprehensive review spanning over three years, the OCC concluded that Anchorage Digital no longer required the consent order to ensure the safety and compliance of the bank. This decision marks a significant milestone for both the company and the broader cryptocurrency sector.

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On Thursday, the OCC announced it has terminated a consent order against Anchorage Digital, which had been in place since April 2022. The OCC originally placed the order due to Anchorage's "failure to adopt and implement a compliance program" that met the standards set by the Bank Secrecy Act and Anti-Money Laundering regulations.

Nathan McCauley, co-founder and CEO of Anchorage, expressed that this development is a milestone not only for the company but for the cryptocurrency industry overall. “With our consent order lifted, we’ve proven definitively that crypto and federal oversight are not mutually exclusive,” he stated. He also mentioned that this outcome creates "the standard for federally-chartered custody of digital assets."

In 2022, Acting Comptroller Michael Hsu emphasized that all nationally chartered banks must uphold consistent regulatory compliance, regardless of whether they are engaged in traditional banking activities or innovative practices like cryptocurrency. “When institutions fall short,” Hsu added, “we will take action and hold them accountable.”

While Anchorage did not admit or deny the OCC’s findings, the company acknowledged its commitment to strengthen identified weaknesses and establish a new standard for internal BSA/AML controls and procedures. This situation was particularly crucial given that Anchorage had recently 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 receiving its charter, McCauley remarked, “We knew what we were signing up for. The seeming impossibility of our federal charter mission lit a fire under us from the start.”

The OCC has historically approached digital assets with caution, but under the Trump administration and subsequent crypto-friendly leadership, its stance has shifted toward a more favorable outlook. Currently, Acting Comptroller Rodney Hood has characterized cryptocurrency as a “transformation,” highlighting its potential rather than dismissing it as a fleeting trend.

Hood confirmed that federally chartered banks are permitted to responsibly engage in various cryptocurrency activities such as buying, selling, and providing third-party custody services, provided they manage risks effectively. Additionally, recent changes from the Federal Reserve mean that state banks no longer need prior approval for crypto-related activities, while the FDIC has clarified banks' participation in the digital asset sector without requiring upfront consent. Even the SEC has adjusted its regulatory approach, removing previous mandates that classified custodied crypto assets as liabilities.