OCC Clarifies Bank Authority to Engage in Certain Cryptocurrency Activities

On March 7, the Office of the Comptroller of the Currency (OCC) published Interpretive Letter 1183 (the Letter), which reaffirms that a variety of cryptocurrency activities are permissible for national banks and federal savings associations, including crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks, such as a distributed ledger. The Letter also rescinds the requirement that OCC-supervised institutions receive supervisory nonobjection and demonstrate adequate controls before engaging in these cryptocurrency activities. The OCC also withdrew its participation in the joint statement on crypto-asset risks to banking organizations and the joint statement on liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities.

On March 10, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the OCC issued the 2024 Shared National Credit (SNC) Program report (the Report), concluding that credit risk associated with large, syndicated bank loans remains moderate. The Report focused on leveraged loans and stressed borrowers from various industry sectors and assessed aggregate loan commitments of $100 million or more that are shared by multiple regulated financial institutions. The percentage of loans that deserve management’s close attention (“non-pass” loans comprised of SNC commitments rated “special mention” and “classified”) increased from 8.9% of total commitments to 9.1% year over year. US banks hold 45% of all SNC commitments but only hold 23% of non-pass loans. Nearly half of total SNC commitments are leveraged, and leveraged loans comprise 79% of non-pass loans. The Report also noted weakened credit quality trends as a result of higher interest rates on leveraged borrowers and compressed operating margins in some industry sectors. In 2025, the severity of risk is expected to be impacted by borrowers’ capacity to handle interest expenses, real estate conditions, and various macroeconomic factors. The modestly higher rate of special mention and classified commitments in 2024 is driven by weakened credit quality in Technology, Telecom, and Media; Commercial Services; Health Care and Pharmaceutical; and Materials and Commodities excluding Oil and Gas industry segments.

On March 6, the US Securities and Exchange Commission (SEC) released comprehensive guidance and resources to assist filers with the new and improved Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Last September, the SEC adopted rule and form amendments referred to as “EDGAR Next” to improve the ability of filers to securely manage and maintain access to their EDGAR accounts while simplifying the procedures for them to access EDGAR. A new EDGAR Filer Management dashboard will open on March 24, where filers may enroll in EDGAR Next and where individuals or entities requiring access to file on EDGAR may submit the Form ID access application.

The SEC’s resources will assist filers with upcoming access and account management enhancements to the EDGAR system and include instructional videos and written materials, such as “How Do I” guides. Although enrollment in EDGAR Next remains open until December 19, filers should enroll no later than September 12 to avoid interruption in the ability to file.