• U.S. banks can now manage crypto assets and offer custody services under new OCC rules.

  • Banks no longer need approval before offering crypto services as regulators ease past restrictions.

  • OCC allows banks to use third-party providers for crypto trading and custody under strict guidelines.

The Office of the Comptroller of the Currency (OCC) has issued new guidance allowing U.S. national banks to manage crypto assets. The update confirms banks can buy, sell, and safeguard digital currencies on behalf of customers.

https://twitter.com/WuBlockchain/status/1920236222791983271

This marks a return to the policy outlined in Interpretive Letter 1170 from July 2020. That earlier move had first authorized banks to offer cryptocurrency custody services. The new directive, Interpretive Letter 1184, extends that authority. It now permits banks to use third-party providers for crypto execution and custody services.

Reversal of Restrictive Policies

This change follows the backtracked guidelines that had restricted banks’ entry into digital asset markets by federal regulators. Additionally, two weeks before, the Federal Reserve and FDIC withdrew letters that had required prior approval when conducting crypto.

Those policies had limited institutional crypto adoption. They were widely seen as part of the "Choke Point" strategy, which discouraged banks from participating in the digital asset space.

Legal Clarity and Risk Management

Banks can now engage in crypto business as long as they comply with usual financial safety measures, according to the message from the OCC. These comprise due diligence, third-party risk management and cybersecurity protocols. Banks also need to ensure that all operations align with federal law and regulatory expectations.

Institutions can now offer services like stablecoin custody and act as nodes on blockchain networks. This development follows the OCC’s March letter, which labeled such actions as “crypto-asset activities.”

New Direction Signals Policy Shift

The policy is part of a steadier shift in federal perspectives towards digital finance. Acting Comptroller of the Currency Rodney E. Hood highlighted that these services are even included in modern banking. The OCC’s new stand joins recent shifts by the FDIC and Federal Reserve.

In March, the OCC reaffirmed that banks could engage in distributed ledger technologies and stablecoins. That announcement laid the groundwork for the most recent clarification. The new letter eliminates the need for prior written non-objection, which was required under the previous administration.

Institutional Crypto Access Expands

Traditional financial institutions now have a clear regulatory pathway to enter the crypto market. They can offer digital asset services without building infrastructure from scratch. This change opens doors for banks to partner with crypto-native firms for custody and trading.

Banks must still meet strict oversight standards. However, the OCC’s letter confirms they may handle crypto assets as they would other financial products. This recognition moves crypto closer to full integration within the U.S. banking system.