OCC Clears US Banks To Buy, Sell, And Custody Crypto with Third-Party Support

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com 13h05 5 min read by Ifeoluwa O. The U.S. Office of the Comptroller of the Currency (OCC) has confirmed that banks can now help customers buy and sell crypto assets held in custody. They are also allowed to provide and outsource cryptocurrency custody and execution services, provided these activities are backed by strong risk management. In BriefU.S. banks can now offer crypto custody and execution services, including tax reporting and fiat-crypto swaps.Third-party providers may support these services, as long as banks manage associated risks responsibly.Industry leaders say the move brings regulatory clarity and helps integrate crypto into traditional banking.OCC’s May 7 Letter: A New Phase for Bank-Led Crypto Services?According to the interpretive letter released on May 7, the regulator noted that banks may carry out these services at the direction of the customer and may rely on third-party providers to support custody and execution tasks—so long as those third parties are managed responsibly.This development builds upon previous regulatory easing that began in early March and is now being viewed as a significant move to bring crypto further into the mainstream financial system.Based on the letter, banks are now allowed to help customers with services such as executing crypto trades, swapping between cryptocurrencies and fiat money, maintaining transaction records, valuing digital assets, offering tax support, and generating reports. The OCC referenced its earlier Interpretive Letter 1170 from July 2020, stating:“The services national banks may provide in relation to the cryptocurrency they are custodying may include services such as facilitating the customer’s cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, [record keeping], valuation, tax services, reporting, or other appropriate services”This latest update follows the OCC’s March decision to revise its stance on how banks engage with crypto, removing the need for special approval before offering related services. The move effectively overturns a 2021 policy that had required banks to wait for regulatory clearance.These changes come during a broader shift in how the U.S. government views crypto under President Donald Trump. In April, the Federal Reserve withdrew earlier guidance that discouraged banks from engaging with crypto and stablecoins.That same month, President Trump signed a resolution that overturned a Biden-era rule. The old rule would have mandated decentralized finance platforms to disclose transactions to the IRS. With that rule now gone, DeFi platforms have more breathing room.This development could mark the start of a new phase for crypto in the U.S. banking system. After years of mixed messages, banks finally have a green light. With support from the OCC, the Fed, and the White House, crypto is taking a new shape in the U.S.For now, banks and crypto companies alike are watching closely for more updates. But the signal from regulators is clear: crypto is back on the table.Industry Leaders Welcome Regulatory Clarity on Banks’ Role in CryptoKatherine Kirkpatrick, General Counsel at StarkWare, said the new letters show a clear shift in direction, integrating crypto into the traditional banking framework. She believes that proper guidance will provide clarity and allow banks to reenter the crypto industry without fear of regulatory risk. She wrote:Why is this so important? These letters signal a shift in the OCC’s approach, which now looks like a focus on integrating crypto w/in trad banking frameworks. More guidance will give further clarity & will allow banks to re-enter crypto w/out the fear of existential regulatory risk.She also called the recent update a major win for crypto-native companies that offer custody or trade execution services.Similarly, the Chief Policy Officer at Coinbase, Faryar Shirzad, thanked Acting Comptroller Rodney Hood for offering clarity. He said the guidance confirms that banks can offer a full range of crypto services and praised the OCC’s careful, law-based approach:Enormous thanks to Acting USOCC Comptroller Rodney Hood for further clarifying that national banks can provide a full range of crypto services. We appreciate Comptroller Hood’s commitment to regulatory clarity, as well as his adherence to supervisory best practices and the letter of the law in his approach to this issue.Thus, this development may signal a clearer path for U.S. banks to reengage with crypto services. It could also encourage other regulators to revisit restrictive policies and align with a more bank-integrated crypto framework.Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.Ifeoluwa O.Ifeoluwa specializes in Web3 writing and marketing, with over 5 years of experience creating insightful and strategic content. Beyond this, he trades crypto and is skilled at conducting technical, fundamental, and on-chain analyses.DISCLAIMERThe views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. 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