OCC Opens Banking Crypto Floodgates
Banks can now buy and sell crypto, ending uncertainty over customer-directed trades
US banks can now trade and custody cryptocurrency on behalf of their customers following a landmark policy shift from America's top banking regulator.
The US Office of the Comptroller of the Currency (OCC) issued interpretive letters on May 7 removing long-standing restrictions on national banks engaging with digital assets, allowing them to buy, sell, and hold cryptocurrencies on behalf of customers without prior regulatory approval.
This policy shift removes prior regulatory hurdles, allowing banks to engage in crypto activities like trade execution, recordkeeping, valuation, and tax reporting, provided they adhere to safety-and-soundness requirements.
The March 2025 reversal of the requirement for banks to seek regulatory approval before engaging in crypto activities laid the groundwork for this week's guidance.
Read: Banks Get OCC Nod to Play Crypto
The newly explained policy stance released by the OCC on Wednesday also clarified that the bankers can outsource crypto activities to third parties, including custody and executive services. As long as it all still checks the boxes of the watchdog's safety-and-soundness requirements, the OCC is giving the banks more crypto freedom.
This outsourcing provision is particularly significant as it allows banks to leverage specialist crypto firms' expertise without building costly infrastructure from scratch.
The OCC also reaffirmed its guidance from previous letters, which recognise crypto custody as a modern form of traditional bank custody services.
The dollar index, which measures the greenback against a basket of major currencies, has fallen to its lowest since November, potentially creating a favourable environment for digital assets as banks expand their crypto offerings.