In a significant development for the cryptocurrency industry, the U.S. Office of the Comptroller of the Currency (OCC) has officially confirmed that national banks and federal savings associations can provide cryptocurrency custody and trading services to their customers.
NEW: 🇺🇸 US regulator OCC confirms regulated banks can custody #Bitcoin & crypto.
— Bitcoin Magazine (@BitcoinMagazine) May 8, 2025
OCC Clarifies Crypto Services for Banks
The OCC released Interpretive Letter 1184 on Wednesday, May 7, 2025, which clearly states that banks under its regulation can buy and sell crypto assets on behalf of their customers. Additionally, the guidance confirms that these institutions may outsource crypto-asset services to third parties, including custody and trade execution, provided they maintain sound risk management practices.
Acting Comptroller of the Currency Rodney Hood emphasized in a video statement that “this digitalization of financial services is not a trend. It is a transformation.” He further clarified that “regulated banks can provide custody services, including the safekeeping and secure storage of Bitcoin and other digital assets, on behalf of their customers,” and that “the banks we supervise also may buy and sell cryptocurrencies they hold in custody at their customer’s direction.”
Expanded Service Offerings
According to the interpretive letter, banks are now permitted to offer a comprehensive suite of cryptocurrency-related services, including:
- Facilitating cryptocurrency and fiat currency exchange transactions
- Transaction settlement and trade execution
- Maintaining transaction records
- Valuing digital assets
- Providing tax services and compliance reporting
The OCC also clarified that banks can utilize third parties as “sub-custodians” to facilitate crypto activities for their customers, though they will be required to implement proper risk management provisions if involving these third parties.
Shift in Regulatory Approach
This latest guidance follows a similar directive issued in March, which rescinded the 2021 policy requiring banks to seek prior supervisory approval before engaging in crypto-related services. That policy change was part of the broader shift toward more crypto-friendly policies under the Trump administration.
In April, the Federal Reserve also dropped its supervisory guidelines that previously required American banks to notify it in advance of any crypto-asset activities. Banks are no longer required to obtain formal approval from the Fed before engaging in stablecoin-related operations.
Industry Response
Katherine Kirkpatrick, General Counsel at StarkWare, stated that the new letters show a clear shift in direction, integrating cryptocurrency into the traditional banking framework. She believes that proper guidance will provide clarity and allow banks to reenter the crypto industry without fear of regulatory risk.
Faryar Shirzad, Chief Policy Officer at Coinbase, thanked Acting Comptroller Hood for offering clarity, stating that the guidance confirms banks can offer a full range of crypto services while praising the OCC’s “careful, law-based approach.”
Broader Policy Changes
This regulatory update is part of a broader shift in U.S. cryptocurrency policy. President Donald Trump appointed Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC), replacing former Chair Gary Gensler. Following this change, the SEC has withdrawn several high-profile crypto lawsuits and investigations.
At the federal level, Trump has also formed a working group to review crypto regulations and ordered the creation of a national Bitcoin reserve.
President Trump’s administration has directed the Crypto Task Force to present a comprehensive crypto rulebook for the United States by August 2025.
Implications for the Banking Sector
This updated guidance from the OCC marks an important step in integrating digital assets into the regulated financial system. With these clear rules in place, national banks are better positioned to serve customers while ensuring that crypto-related activities are conducted responsibly and securely.
For banks, this presents an opportunity to broaden their offerings by providing services related to digital assets in addition to traditional financial services. Regulated banks can now help customers manage their crypto portfolios just as they would traditional assets.
The OCC’s decision enables banks to participate more actively in the rapidly growing cryptocurrency market, which now includes over 50 million Americans, while maintaining regulatory oversight to ensure consumer protection and compliance with applicable laws.
Want real-time updates on Bitcoin, Ethereum, and blockchain trends? Crypto News Today delivers breaking crypto news, expert insights, and price movements to keep you informed.
