Nazia Saeed
The US office of the comptroller of the currency (OCC) has confirmed that banks and federal savings associations can trade cryptocurrencies held in custody at the direction of customers. In a letter dated may 7, acting comptroller Rodney hood clarified that banks under OCC jurisdiction can also outsource certain crypto-related services to third-party providers, provided they comply with relevant laws.
In a press release, the OCC stated that financial institutions may engage third parties for bank-permissible activities such as crypto custody and execution services. Hood expanded on this in a video posted to X, noting that OCC-regulated banks may also offer services like record keeping, tax, and reporting functions related to digital assets.
Third-party involvement and expanded crypto functions
According to Hood, banks can use sub-custodians to deliver these services as long as proper third-party risk management practices are followed. He also emphasized that a range of cryptocurrency and digital asset activities may be conducted by both banks and their service partners.
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The clarification builds on earlier guidance issued on march 7, when the OCC eased restrictions by allowing banks to engage in crypto custody, certain stable coin-related operations, and participation in decentralized networks such as distributed ledgers.
The OCC operates as an independent bureau within the US department of the treasury, overseeing all national banks and the federal branches of foreign institutions.
Industry reaction and policy shifts
The crypto industry has welcomed the OCC’s updated stance. Katherine Kirkpatrick Bos, general counsel at starkware, said the new letters indicate a “shift in the OCC’s approach” toward integrating crypto within the traditional banking framework. She added that the OCC’s explicit support for outsourcing crypto services benefits regulated crypto-native firms and lowers regulatory risk for banks.
The broader policy environment has also shifted under the Trump administration. In April, the federal reserve withdrew earlier guidance discouraging banks from engaging in crypto and stable coin activities. President trump further repealed a rule from the Biden era that would have required defi protocols to report transactions.
