US Banks Can Now Buy and Sell Customers’ Crypto Assets: OCC Clarifies
The US Office of the Comptroller of the Currency (OCC), which regulates national banks, has clarified that institutions under its oversight can now buy and sell crypto assets on behalf of their customers. This update was...
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The US Office of the Comptroller of the Currency (OCC), which regulates national banks, has clarified that institutions under its oversight can now buy and sell crypto assets on behalf of their customers. This update was confirmed in an interpretive letter published yesterday (Wednesday).
In addition, the OCC stated that national banks may outsource crypto-asset services to third parties, including custody and trade execution, provided those third parties maintain sound risk management practices.
Banks Can Now Handle Customers’ Crypto Holdings
The latest OCC letter follows a similar directive issued in March, which rescinded the 2021 policy requiring banks to seek prior supervisory approval before engaging in crypto-related services.
“The services national banks may provide in relation to the cryptocurrency they are custodying may include services such as facilitating the customer’s cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, recordkeeping, valuation, tax services, reporting, or other appropriate services,” the March letter stated.
It further clarified: “A bank acting as custodian may engage a sub-custodian for cryptocurrency it holds on behalf of customers and should develop processes to ensure that the sub-custodian’s operations have proper internal controls to protect the customer’s cryptocurrency.”
The US Crypto Landscape Is Shifting
Meanwhile, the Federal Reserve recently dropped its supervisory guidelines that previously required American banks to notify it in advance of any crypto-asset activities. Banks are also no longer required to obtain formal approval from the Fed before engaging in stablecoin-related operations.
The decisions by both US regulators reflect the broader shift toward more crypto-friendly policies under the Trump administration.
President Donald Trump appointed Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC), the agency known for its enforcement actions against crypto companies. Following the departure of former Chair Gary Gensler, the SEC has withdrawn several high-profile crypto lawsuits and investigations.
At the federal level, Trump has also formed a working group to review crypto regulations and ordered the creation of a national Bitcoin reserve.
This article was written by Arnab Shome at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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