US banks crypto custody services just got a major green light. The Office of the Comptroller of the Currency (OCC) confirmed this week—via Interpretive Letter 1184—that national banks can now buy, sell, and hold cryptocurrency assets for customers. This shift in OCC crypto banking rules removes previous restrictions and opens the door for traditional banks to offer secure crypto storage alongside traditional financial services.
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What OCC’s Crypto Custody Rules Mean for Security & Regulations
Banks Gain Explicit Authority to Custody and Trade Crypto
The OCC’s letter clarifies that national banks may:
- Hold cryptographic keys associated with customer crypto assets.
- Execute transactions (buy/sell) on behalf of customers.
- Provide ancillary services like tax reporting, valuation, and settlement.
“A national bank may hold cryptocurrency as a custodian in the same manner as it holds other assets… including through the use of sub-custodians,” states Letter 1184, emphasizing parity with traditional asset custody.
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Outsourcing to Third Parties Is Allowed (With Safeguards)
Banks don’t have to manage everything in-house. They can partner with sub-custodians, but the OCC requires strict oversight. The OCC warns: “Banks must ensure sub-custodians adhere to the same risk management standards expected of the bank itself.”
Banks are no longer required to obtain advance approval for each crypto-related activity. However, they remain subject to ongoing supervision and must document how they meet all relevant compliance standards.
The Fed Also Loosened Restrictions
This comes after the Federal Reserve decided to eliminate the advance notice for banks with an interest in the crypto space. The requirement for pre-approval for operating a stablecoin is also dead, which is indicative of the general relaxation of the policies surrounding cryptocurrencies.
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