- OCC clarified that U.S. banks could hold, trade, or let third parties handle clients’ crypto assets.
- However, the permissible crypto activities must happen within applicable laws.
The U.S. Office of the Comptroller of the Currency (OCC) has clarified that banks can trade or custody crypto assets like Bitcoin [BTC] on behalf of clients.
According to an interpretive letter issued on the 7th of May, the regulator also noted that national banks could let third parties handle the above services with clients’ permission.
OCC doubles down on crypto
Rodney Hood, the CEO of the OCC, added that banks could offer other services,
“These banks may provide other custody services, including record keeping, tax, or reporting services for their customers. OCC banks may use a sub-custodian to provide the same services.”
The update comes after another guidance in March, which greenlighted banks to handle crypto assets and stablecoins.
Interestingly, the March supervisory memo also rescinded a previous restrictive stance against the digital assets sector that has been in place since 2021.
Overall, the pro-crypto shift is now a growing trend under the President Donald Trump Administration.
Reacting to the OCC’s latest update, the U.S. House Committee on Financial Services, led by Republicans, applauded the move. It pledged support for the crypto market structure bill and read,
“Members look forward to continuing the work needed to develop a digital asset framework that drives innovation and builds upon the success of the Trump Admin’s pro-growth, pro-innovation agenda.”
Nevertheless, OCC’s Hood reiterated that the regulator expected all permissible crypto activities to happen within set rules. He added,
“I want to be clear that the OCC expects these activities to be conducted in a safe and sound manner, and in compliance with applicable law.”
That said, stablecoins appear well-positioned to benefit from this massive shift, and by extension, this could set the stage for the disruption of the traditional banking system.
