The U.S. Office of the Comptroller of the Currency (OCC) has verified that banks within its purview are permitted to engage in cryptocurrency trading for their clients and may delegate certain crypto-related tasks to external entities.
Acting comptroller Rodney Hood
said
In a letter dated May 7th intended for banks and federal savings associations,
you can purchase and trade cryptocurrencies
They keep in custody as per the customer’s instruction.
The OCC
added
In a press release, it was stated that financial institutions have the option to outsource tasks that are permissible for banks.
crypto activities
Including custody and execution services provided to third parties, all of which comply with relevant laws.
“Furthermore, these banks might offer additional custodial services such as record-keeping, tax assistance, or reporting services to their clients,” Hood
said
on a video uploaded to X on May 7.
“Subject to proper third-party risk management practices, OCC banks can utilize a sub-custodian for providing these services. Additionally, various activities related to cryptocurrencies and digital assets might be conducted by both banks and their respective third parties,” he further explained.
Previously, the OCC relaxed its regulations
position on how financial institutions can interact with cryptocurrency
On March 7, they approved cryptocurrency asset custodianship, certain stablecoin operations, and involvement in independent node verification networks like distributed ledgers.
“Over 50 million Americans possess various types of cryptocurrencies. This shift towards digitized financial services represents a transformative change, rather than just a fleeting trend,” according to Hood.
The OCC is an autonomous agency located inside the U.S. Department of the Treasury that
regulates
It oversees all national banks as well as the federal offices of foreign banks.
The industry backs the OCC letters.
Katherine Kirkpatrick Bos, who serves as the general counsel for ZK-rollup creator StarkWare,
said
The letters indicate a “change in the OCC’s strategy,” suggesting they now seem inclined towards emphasizing the integration of crypto into banking systems.
“Additional guidance will provide more clarity and enable banks to re-engage with cryptocurrencies without the concern of facing significant regulatory risks,” she stated.
Today, she highlighted the OCC’s explicit approval which permits banks to outsource activities related to crypto-assets permissible for banking purposes as highly beneficial for regulated cryptocurrency-focused service providers.
The chief policy officer at cryptocurrency exchange Coinbase, Faryar Shirzad, likewise welcomed this development.
saying
In a May 7 tweet on X, Hood’s dedication to providing “clear regulations,” along with his commitment to following the finest supervisory standards and adhering strictly to legal requirements, is valued.
The Trump administration has
adopted a more welcoming stance towards cryptocurrency
since taking office in January.
Related:
The insights gained during the Operation Chokepoint 2.0 Congressional hearings
In April, the US Federal Reserve
stated it would be discontinuing guidance
That was established to discourage banks from participating in cryptocurrency and stablecoin operations.
U.S. President Donald Trump as well
approved a joint congressional resolution on April 11
, reversing a regulation from the Biden administration era that mandated decentralized finance platforms to report transactions to the IRS.
Magazine:
The SEC’s reversal on cryptocurrency leaves crucial queries unresolved.