American national banks are legally allowed to buy and sell crypto on behalf of their customers. Decision was made on Wednesday in the form of a modified letter of interpretation From the Currency Comptroller's (OCC) office, previous regulatory barriers were removed and banks allowed to proceed with digital asset services.
Allows banks to provide full crypto service
Under OCC guide, federal savings associations and national banks can now Offer a full range of crypto services. That covers the purchase and sale of digital assets, converting them to the US dollars, making upheres, maintaining customer records, and even supporting taxation and tax reporting values.
These services can be managed either on the banks themselves or in collaboration with third-party providers. But in both cases, the Occ Is unclear: banks need to have stable internal controls and risk management procedures.
First page of the OCC Interpretive Letter. Source: OCC
The new guide also indicates a broader change in the way US regulators think about crypto. On March 7, the OCC removed a rule that forced banks to obtain supervision that did not reduce before making a foray on digital currencies.
Then on April 24, the Federal Reserve was backtracking to 2022 policy ordered state member banks to provide preliminary notice before becoming involved in crypto activities. According to Faryar Shirzad, Coinbase's chief policy official, this new direction brings more clarity. He also acknowledged the comptroller Rodney Hood in helping to advance it.
Thanks so much thanks @USOCC The Comptroller Rodney Hood for further clarification that national banks can provide a full range of crypto services. We appreciate Comptroller Hood's promise in the clarity of regulation, as well as his compliance with the supervision of the best skill and the… pic.twitter.com/i1mykc4t1i
– FARARY SHIRZAD 🛡️ (@FARARYSHIRZAD) May 7, 2025
Banks must act in the customer's direction
Occ letter also clarified that banks can act on a customer's instruction. So if one holds a crypto with their bank and wants to sell the crypto, then the bank can perform the transaction directly. It enhances customers' control and gives way to the way for easier crypto transactions using well -known banking conduits.
This explanation is based on the previous guide from the OCC, but is now removing any uncertainty. Banks do not have to wait for special approval to provide these services, which can accelerate adoption.
As of today, the market cap of cryptocurrencies stood at $3.23 trillion. Chart: TradingView
Risk Administration Rules for Outgoing Providers
The OCC guide also establishes the requirements for how banks deal with third-party crypto service providers. In the event of bank outsource activities such as crypto preservation or transaction facilitating, the right diligence needs to be carried out and oversight -established.
Image: FIU Business
Sub-custodians, in particular, have to comply with security protocols to protect customer assets. Banks are expected by the OCC to hold such partners to the same standard that they apply in other banking segments. Risk of risks need to be consistent with current regulations to protect customers from possible uprising.
Crypto's path toward the mainstream of banking
This announcement is a powerful message that crypto is no longer illegal for major banks. By providing banks more latitude to engage without the need for initial approval, the OCC has signed a more embrace the attitude toward digital asset services within regulated finances.
If this leads to a flood of business banks is not sure. But the guidelines are in place, the door is open, and customers can now choose to get crypto services from both banks where they hold their review accounts.
Featured image from information, chart from tradingview
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