The U.S. Office of the Comptroller of the Currency has clarified that national banks and federal savings associations are permitted to buy and sell crypto assets on behalf of their customers.
This development came through an interpretive letter on Wednesday. It builds upon previous guidance and removes earlier supervisory hurdles. It also signals a broader acceptance of crypto asset activities within the traditional banking sector.
Banks May Offer Full Crypto Execution Services
According to the OCC’s updated interpretive letter, national banks can execute crypto transactions and provide related services such as asset settlement, exchange between fiat and cryptocurrencies, recordkeeping, valuation, and tax reporting.
These services may be conducted either directly or via third-party service providers. The OCC emphasized that institutions must maintain robust internal controls and adhere to sound risk management practices, especially when working with sub-custodians.
The letter also confirms that banks can act based on the customer’s direction when buying or selling assets in custody.
Third-Party Relationships Require Risk Oversight
The OCC’s latest letter further outlines banks’ responsibilities when outsourcing crypto custody or execution services. Institutions must implement due diligence procedures and ensure appropriate oversight mechanisms when engaging sub-custodians.
These third-party relationships must also be governed by risk management frameworks that align with existing banking standards. Furthermore, sub-custodians’ involvement must ensure customer asset protection through adequate internal safeguards.
Regulatory Shift Under Trump Administration
This regulatory update aligns with broader changes under President Donald Trump’s administration. It has shown increased openness toward digital asset integration within the financial system.
An OCC’s March 7 communication rescinded prior rules that required banks to obtain supervisory non-objection before engaging in crypto-related operations. The U.S. Federal Reserve also announced on April 24 that it is withdrawing its 2022 guidance that mandated advance notice for state member banks engaging in crypto activities.
Coinbase’s Chief Policy Officer, Faryar Shirzad, acknowledged the regulatory update and noted Acting Comptroller Rodney Hood’s role in delivering greater regulatory clarity.
Enormous thanks to Acting @USOCC Comptroller Rodney Hood for further clarifying that national banks can provide a full range of crypto services. We appreciate Comptroller Hood’s commitment to regulatory clarity, as well as his adherence to supervisory best practices and the… pic.twitter.com/i1MyKc4T1I
— Faryar Shirzad 🛡️ (@faryarshirzad) May 7, 2025
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