The US Office of the Comptroller of the Currency (OCC) has taken significant steps to clarify the role of banks in the burgeoning cryptocurrency market. In a letter dated May 7, Acting Comptroller Rodney Hood confirmed that banks under OCC jurisdiction are now permitted to trade cryptocurrencies on behalf of their customers and can outsource certain crypto-related services to third-party providers.
According to Hood, banks and federal savings associations have the authority to buy and sell crypto assets held in custody at the direction of their customers. This affirmation marks a transformative shift in regulatory policy, allowing financial institutions to engage more fully with digital assets while prioritizing customer service and compliance with apt legal frameworks.
Furthermore, the OCC stated in a press release that banks could outsource bank-permissible crypto activities, including custody and execution services, provided they adhere to applicable laws. This move aims to mitigate potential risks associated with third-party relationships, thereby enhancing the security of customer assets.
Hood emphasized, “Additionally, these banks may provide other custody services, including record-keeping, tax, or reporting services for their customers.” This reflects a broader acceptance of cryptocurrency within established banking protocols, paving the way for greater integration of digital assets in the financial mainstream.
OCC-regulated banks may buy and sell assets held in custody and are permitted to outsource bank-permissible crypto-asset activities, including custody and execution services. https://t.co/0ScQdgNaS6 pic.twitter.com/J5dEkx4WUL
— OCC (@USOCC) May 7, 2025
The OCC’s recent evolution in its stance toward cryptocurrency comes on the heels of previous announcements that eased prohibitions against banks engaging in crypto activities. On March 7, the OCC granted approval for banks to provide custodial services for crypto assets, participate in stablecoin activities, and engage with independent node verification networks like distributed ledgers.
As Hood pointed out, more than 50 million Americans currently own some form of cryptocurrency. He stated, “This digitalization of financial services is not a trend; it is a transformation.” Such developments suggest an ongoing commitment to fostering an environment where financial institutions can safely and effectively manage digital assets.
Industry Insights on Regulatory Changes
The latest OCC letters have garnered support from various industry leaders. Katherine Kirkpatrick Bos, general counsel at StarkWare, remarked that these changes signal a pivotal shift in the OCC’s approach, emphasizing the importance of integrating cryptocurrencies within existing banking frameworks. She noted, “More guidance will give further clarity [and] will allow banks to re-enter crypto [without] the fear of existential regulatory risk.”
Similarly, Faryar Shirzad, the chief policy officer at Coinbase, praised Hood’s commitment to regulatory clarity, acknowledging its positive impact on national banks and the crypto market. He stated that Hood’s adherence to supervisory best practices is essential in fostering a flourishing digital asset environment.
The political landscape surrounding cryptocurrency regulation has also shifted notably since the Trump administration took office, with a more welcoming attitude toward digital assets evident in recent months. As the Federal Reserve withdrew guidance that previously discouraged banks from engaging in crypto and stablecoin activities, the OCC’s actions align with this overall trend toward regulatory support.
As institutions continue to adapt to these changes, it will be critical to monitor how banks leverage these new capabilities concerning their customers’ crypto assets. By doing so, they can provide enhanced financial services while navigating the complexities of a rapidly evolving digital landscape.
