OCC Allows US Banks to Trade, Outsource Crypto Activities

OCC confirms that federal banks can trade crypto for customers and outsource certain crypto activities in compliance with U.S. law.

  • Guidance allows banks to buy and sell crypto in custody and partner with third parties for services like custody, execution, and record keeping.
  • Industry leaders have welcomed the update, viewing it as a positive step toward integrating cryptocurrency with traditional banking.

The U.S. Office of the Comptroller of the Currency (OCC) has announced that national banks and federal savings associations can now participate in cryptocurrency trading on behalf of their customers and are permitted to outsource some crypto-related activities to third parties. This update, detailed in a letter from Acting Comptroller Rodney Hood on May 7, marks a significant step in bringing digital asset services into mainstream banking.

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Hood confirmed that banks may buy and sell cryptocurrencies held in custody, acting strictly at their customers’ direction. The OCC also issued a press release explaining that banks can legally outsource permissible cryptocurrency activities, such as custody and execution services, as long as they comply with applicable regulations.

“Additionally, these banks may provide other custody services, including record keeping, tax or reporting services for their customers,” Hood explained in a video posted to X. He added, “OCC banks may use a sub-custodian to provide the same services subject to appropriate third-party risk management practices, while a range of cryptocurrency and digital asset activities may be performed by banks and their third parties.”

In March, the OCC had already eased its stance to allow banks to provide crypto-asset custody, certain stablecoin services, and support for networks like distributed ledgers. Hood highlighted the growing public interest in digital assets, noting, “More than 50 million Americans hold some form of cryptocurrency. This digitalization of financial services is not a trend; it is a transformation.” The OCC, an independent bureau within the U.S. Department of the Treasury, oversees all national and many foreign banks with operations in the U.S.

The revised guidance has received positive feedback from the industry. Katherine Kirkpatrick Bos, general counsel at StarkWare, said in a statement that the OCC’s approach now supports integrating crypto into traditional banking. She called the explicit permission to outsource permissible crypto activities “a boon to regulated crypto native service providers.”

Coinbase’s chief policy officer, Faryar Shirzad, also welcomed the clarification, praising Hood’s commitment to regulatory transparency in a post on X.

In April, the U.S. Federal Reserve withdrew earlier guidance that restricted banks’ participation in crypto and stablecoin activities. Additionally, on April 11, President Donald Trump signed a resolution overturning a rule from the previous administration that would have required decentralized finance (DeFi) protocols to report transactions to the Internal Revenue Service.

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These developments show the ongoing transformation of financial regulation as digital assets become increasingly integrated into the U.S. banking landscape.

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