OCC Opens Doors for Banks to Handle Crypto
In a landmark decision, the US Office of the Comptroller of the Currency (OCC) has officially cleared the path for banks to engage in cryptocurrency-related activities on behalf of their customers. The agency confirmed in a letter dated 7 May 2025 that national banks and federal savings associations can buy and sell digital assets held in custody, provided those transactions are directed by customers.
This long-awaited clarification arrives as financial institutions increasingly seek ways to offer digital asset services. The OCC’s decision means that banks can now hold, trade, and outsource crypto services, all within the bounds of existing regulatory frameworks.
Crypto Custody and Trading Now Permitted
One of the most significant changes is that banks can now engage in crypto trading activities involving assets already under their custody. This move not only enhances flexibility for banks but also addresses a key concern within the crypto sector: regulatory uncertainty.
According to the OCC, banks may also outsource crypto-related services, such as custody and execution, to third-party providers. However, these arrangements must comply with all existing banking laws and risk management standards, ensuring oversight and accountability remain central to operations.
Ancillary Services Also Approved
Beyond custody and trading, the OCC stated that banks may now offer a range of ancillary services. These include recordkeeping, tax reporting, and creating sub-custodian agreements for digital assets. Such services, while administrative in nature, are vital for ensuring compliance with customer obligations and tax requirements.
The OCC emphasized that all third-party engagements must fall under established risk oversight frameworks. This ensures that banks maintain operational control and regulatory compliance, even when relying on outside vendors.
Reflecting a Shift in Regulatory Tone
This announcement follows a policy shift earlier in March 2025, when the OCC began allowing banks to participate in limited crypto functions. These included custody of digital assets, stablecoin-related services, and participation in distributed ledger networks.
Industry observers note that the latest OCC communication marks a broader evolution in how traditional finance views digital assets. By permitting broader crypto activities, the agency signals a growing acceptance of blockchain-based finance within regulated institutions.
StarkWare and Coinbase React
Reactions from the crypto industry suggest cautious optimism. A representative from StarkWare, a blockchain infrastructure provider, welcomed the news. They noted that the OCC’s recent letters reflect a “change in tone” that could help reduce uncertainty for banks contemplating crypto services. They added that explicit approval for outsourcing permissible activities could prove especially beneficial for regulated crypto service providers.
A spokesperson for Coinbase, one of the largest US-based cryptocurrency exchanges, echoed similar sentiments. They described the OCC’s approach as consistent with a commitment to regulatory clarity and supervisory integrity. Both organizations view the OCC’s decisions as helping bridge the gap between traditional banking and the evolving crypto economy.
Role of the OCC in US Finance
The OCC, an independent bureau within the US Department of the Treasury, plays a critical role in regulating national banks and the federal branches of foreign institutions. Its decisions influence how financial services evolve, particularly when it comes to emerging technologies like blockchain and cryptocurrency.
By allowing banks to engage in crypto-related services, the OCC appears intent on modernizing the banking systemto reflect growing interest and adoption of digital assets. This may lead to increased institutional participation in crypto markets, supported by clear oversight and compliance structures.
The Road Ahead for Crypto in Banking
With this latest announcement, US banks now have a clear regulatory path to integrate cryptocurrency into their offerings, including custody, trading, and related services. This decision marks a significant step toward mainstreaming crypto within the US financial system.
As more institutions take advantage of this opportunity, consumers could soon gain broader access to digital assets through trusted banking partners. For the crypto industry, the OCC’s green light signals a new phase of collaboration between decentralized technologies and traditional financial institutions.
