The Office of the Comptroller of the Currency confirms that banks can provide cryptocurrency custody services to clients. National banks and federal savings associations can buy and sell crypto assets at the direction of the client. They may also provide these services to third parties.
U.S. banks can finally provide crypto services without regulatory hurdles
According to the latest announcement, U.S. banks can offer related services, including asset settlement, trade execution, record-keeping, valuation, and tax reporting. These activities must comply with applicable laws and agreements with clients.
Additionally, the OCC reaffirmed its guidance from previous letters that recognize cryptocurrency custody as a modern form of traditional banking custody services.
Banks may collaborate with sub-custodians to store and manage crypto assets. However, they must apply strong risk management in doing so.
Third-party providers must adhere to proper controls to protect client assets. Banks remain responsible for overseeing all outsourced services. If a bank is acting in a fiduciary capacity, it must comply with federal fiduciary regulations under parts 9 or 150, depending on the statute. All activities related to cryptocurrencies must be conducted safely, securely, and legally. This applies to both direct and third-party services.
Overall, the OCC's announcement provides banks with a clear legal basis for offering digital asset services within a regulated framework.
It was previously unclear whether banks could actively buy or sell crypto assets held in custody based on client instructions. While custody was permitted, executing trades remained a gray area.
This clarity may enhance confidence in crypto services provided by regulated financial institutions. It also allows banks to meet the demand for cryptocurrencies without needing to build everything themselves.
By affirming this authority, the OCC supports the responsible implementation of cryptocurrencies in the traditional banking environment. This underscores the need for customer protection and oversight. Banks now have a pathway to expand their crypto services, provided there is effective management of partners and risks.#BinanceSquare #Write2Earn #TradeStories #MostRecentTrade #Binance $ETH