US banks can buy and sell customers' crypto assets on their behalf, OCC says
The U.S. Office of the Comptroller of the Currency said that national banks are permitted to buy and sell customers' crypto assets on their behalf, according to its interpretive letter released Wednesday.
The regulator also noted that national banks can outsource crypto custody and trade execution services to third parties, essentially granting them greater flexibility in handling crypto, provided proper risk management is in place.
The OCC's latest letter follows its previous March letter, which rescinded its 2021 stance requiring banks to obtain a supervisory non-objection before engaging in crypto-related activities. Its latest stance reaffirms its earlier 2020 position stating that banks have the authority to provide crypto asset custody.
This clarification from the OCC comes amid a wave of changes regarding regulation of crypto asset activities under pro-crypto President Donald Trump.
Last month, the Federal Reserve withdrew its 2022 guidance on crypto and stablecoin activities, which had discouraged banks from participating by requiring advance notification before engaging in such activities.
The U.S. Federal Deposit Insurance Corporation (FDIC) also rescinded its old guidance to clarify that supervised institutions can engage in "permissible" crypto activities without obtaining approval from the agency beforehand.
