US Banks Cleared to Handle Crypto Assets in Custody
In a significant regulatory update, the U.S. Office of the Comptroller of the Currency (OCC) has confirmed that banks under its oversight can safely hold and manage crypto assets for customers โ a move that brings further clarity to the evolving relationship between traditional banking and digital currencies.
๐ฆ Banks Can Buy, Sell, and Custody Crypto at Customer Direction
According to a recent announcement, national banks and federal savings associations are now permitted to trade digital assets held in custody on behalf of their clients. Additionally, these institutions may outsource custody and execution services to regulated third parties, provided appropriate risk management protocols are followed.
The OCC also allows banks to provide related services such as tax reporting, record keeping, and administrative functions through sub-custodians and trusted vendors.
๐ A Shift Toward Crypto Integration
This announcement follows the OCCโs previous March ruling, which allowed banks to engage in stablecoin activities, digital custody, and blockchain participation, including validation on distributed networks.
With over 50 million Americans reportedly holding some form of cryptocurrency, the OCC recognized that "digitalization is not just a trend โ it's a transformation."
๐ฃ๏ธ Industry Applauds Regulatory Clarity
The financial and crypto sectors have welcomed the OCCโs evolving stance. Legal experts see this as a step toward integrating digital assets into the regulated banking system, providing assurance for banks to explore crypto services without regulatory uncertainty.
The recent policy shifts reflect a broader trend under the current U.S. administration, which has taken a more favorable position on digital assets, overturning prior restrictions and signaling support for innovation in decentralized finance.