OCC: Banks Can Buy and Sell Their Customers' Custodial Crypto Assets
OCC: Banks have the ability to buy and sell their clients' crypto assets that are in custody
A new directive from the US national banking regulator states that institutions can also outsource the storage and execution of cryptocurrencies to third parties.
Jesse Hamilton | Edited by Nikhilesh De May 7, 2025 9:31 PM
Key points:
- The Office of the Comptroller of the Currency further loosened banks' controls over cryptocurrencies, clarifying in letters Wednesday that banks can buy and sell their customers' crypto assets.
- According to the OCC, banks may also use third-party services to handle cryptocurrencies.
- This follows on from earlier OCC guidance that was supported by the Federal Deposit Insurance Corporation and the Federal Reserve, and reversed previous policies that limited banks from seeking regulatory approval before making decisions on cryptocurrencies.
The U.S. Office of the Comptroller of the Currency, which oversees the nation's banks, continues to significantly change its previous stance on cryptocurrencies in banking, issuing guidance letters stating that institutions may, at the request of their customers, buy and sell crypto assets held in custody.
The new policy, released by the OCC on Wednesday, also clarifies that bankers can outsource crypto assets to third parties, including custody and execution services. As long as they meet all the safety and soundness requirements set by the watchdog, the OCC gives banks more freedom in the crypto space.
This week, the agency rescinded an old policy, in effect since March, that required bankers to consult with government regulators before engaging in new cryptocurrency activities. “These letters signal a shift in the OCC’s approach,” Katherine Kirkpatrick Bos, general counsel at Starkware and former chief legal officer at Cboe Digital, wrote on social media site X. She added that the agency appears to be integrating cryptocurrency into traditional banking. Additional guidance on the permissibility of third parties “will have a positive impact on regulated cryptocurrency service providers.”
Read More: OCC Says Banks Can Custody Cryptocurrency, Certain Stablecoin-Related Activities
