After more than three years of waiting, Anchorage Digital finally got some good news this Thursday: the OCC has dropped its consent order. The reason? Simple.
“the safety and soundness of the bank and its compliance with laws and regulations does not require the continued existence of the order.”
Translation: Anchorage's house is in order, and the regulators are happy.
For Anchorage's co-founder and CEO Nathan McCauley, this is a huge win for both the company and the crypto industry as a whole. He’s calling it a “milestone,” and we’re not arguing. He proudly stated:
“With our consent order lifted, we’ve proven definitively that crypto and federal oversight are not mutually exclusive.”
In other words, crypto companies can play nice with the feds, who knew?
Why Did the OCC Go After Anchorage in the First Place?
Back in April 2022, the OCC hit Anchorage with a consent order, citing the company’s “failure to adopt and implement a compliance program” that met the Bank Secrecy Act and Anti-Money Laundering standards. At the time, Acting Comptroller Michael Hsu wasn’t having it, saying that all federally-chartered banks, whether they’re dealing with traditional stuff or shiny new digital assets, have to play by the same compliance rules. He made it clear that if institutions mess up, the OCC will step in.
Though Anchorage didn’t outright admit or deny the allegations, they weren’t about to let this slide. They acknowledged the shortcomings, put their heads down, and started fixing things. This was a make-or-break moment for a company that had just become the first crypto-native business to get a national bank charter from the OCC in 2021. So yeah, no pressure.
A Long Road for Anchorage
McCauley admits they knew what they were getting into when they signed up for the OCC’s scrutiny. But instead of backing down, it fueled them. He said,
“The seeming impossibility of our federal charter mission lit a fire under us from the start.”
And that fire got them through the tough times, especially when compliance was at the top of the list.
OCC and Regulators Are Warming Up to Crypto
Historically, the OCC has been skeptical of crypto, but the times, they are a-changin'. Under the Trump administration and crypto-friendly leadership, the OCC's stance softened. Current Acting Comptroller Rodney Hood has gone on record calling crypto a “transformation” rather than just a passing fad. His view? Federally chartered banks can totally engage in crypto-related activities, buying, selling, and providing third-party custody services, so long as the banks are keeping things in check with proper oversight.
And they’re not the only ones making moves. The Federal Reserve has eliminated the need for state banks to seek permission before diving into crypto activities. Even the FDIC has said banks can play in the digital asset space without asking for permission upfront. Heck, even the SEC has taken a step back, removing a rule that required banks to list crypto assets as liabilities on their balance sheets. Looks like the government’s finally learning to loosen the reins on crypto.
The lifting of the consent order is a big win for Anchorage and a huge moment for the crypto world. It shows that with the right compliance, crypto companies can totally co-exist with federal oversight. So, while things were rocky for a while, this victory paves the way for a smoother ride in the future. The crypto world just got a little more legit.
Anastasiia G
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