The Office of the Comptroller of the Currency today said banks are free to engage in cryptoasset custody and execution services as long as such activities are carried out in a safe, sound and legal manner.
The OCC issued an interpretive letter to clarify bank authority on providing crypto custody services. Among other things, the OCC said national banks and federal savings associations may buy and sell assets held in custody at the customer’s direction, and that they are permitted to outsource to third parties bank-permissible crypto-asset activities, including custody and execution services, subject to appropriate third-party risk management practices.
“As with any activity, a bank must conduct cryptoasset custody activities, including via a sub-custodian, in a safe and sound manner and in compliance with applicable law,” OCC said in a statement.
The Trump administration has taken a friendlier approach to cryptocurrency than the Biden administration, which often emphasized the risks that digital assets pose to the financial system. The OCC in March published an interpretive letter rescinding the agency’s previous policy on bank engagement with cryptocurrency “to reaffirm that a range of cryptocurrency activities are permissible in the federal banking system.” Then in April, the FDIC and Federal Reserve rescinded two joint statements on the risk management obligations of financial institutions should they offer crypto-related services.
