OCC published a new explanatory letter for American banks.
In it, the regulatory body significantly relaxed oversight of counterparties.
Banks can now not only hold crypto assets but also outsource these services and buy and sell them on behalf of clients.
On May 7, 2025, the U.S. Office of the Comptroller of the Currency (OCC) published an explanatory letter regarding banks' interactions with the cryptocurrency sector. According to it, financial counterparties can now buy and sell digital assets on behalf of their clients.
The document states that banks can:
to provide custody services for crypto assets in both fiduciary and non-fiduciary forms;
to buy and sell cryptocurrency at the request of the client;
to use sub-custodians and other intermediaries, outsourcing custody and purchasing services for crypto assets to a third party.
Letter No. 1184 confirms the provisions outlined in Document No. 1170, which established the possibility for banks to provide custody services. The latter was published back in 2020.
It also refers to Letter No. 1183, published by the OCC in March 2025. In it, the OCC revoked the requirement for banks to obtain permission to engage with the crypto business.
CLO of Starkware Catherine Kirkpatrick Boss commented on this:
«These letters signal a shift in OCC's approach, which now appears to focus on integrating cryptocurrencies into the framework of traditional banking. Additional guidance will provide even more clarity and allow banks to re-enter this space without fearing significant regulatory risk.»
It is worth noting that during the previous administration, the OCC and other federal regulatory bodies were accused of debanking the crypto sphere.
In December 2024, U.S. Representative French Hill announced an investigation into such cases.
