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cryptonews 2025-05-08 04:13:36

OCC Grants Banks Permission to Buy and Sell Custody-Held Cryptocurrencies

The US Office of the Comptroller of the Currency (OCC) has shifted its stance on crypto in banking, allowing banks to buy and sell cryptocurrency held in custody at the direction of their customers. This marks a departure from earlier resistance and comes as part of an updated policy to facilitate banks’ involvement in crypto-asset custody services. The OCC’s clarification, released on Wednesday, extends the scope of services banks can provide, including the ability to outsource crypto custody and execution services to third parties. However, these services must meet the OCC’s stringent safety and soundness criteria to ensure proper oversight and risk management. 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 New OCC Regulations Allow Banks to Act as Custodians for Digital Assets This shift is in line with the OCC’s previous guidance, which recognized that crypto-asset custody is an extension of traditional banking activities. Banks, under this new framework, can act as custodians of digital assets, offering services such as exchange facilitation, trade execution and asset management. Additionally, they may use sub-custodians to handle these tasks, provided there are adequate internal controls in place. The move is a big step towards mainstreaming cryptocurrency within the banking sector. By offering a regulatory framework for crypto custody, the OCC aims to integrate digital assets into traditional banking services, thus ensuring both innovation and protection for customers. With these clarifications, the OCC has further enabled national banks to operate within the evolving digital asset market, ensuring that they remain compliant with legal and financial regulations while meeting customer demands. Banks Set to Expand Crypto Services Under Clearer Regulatory Oversight This development comes as the regulatory landscape around cryptocurrencies continues to evolve, with increasing pressure to create clear guidelines for traditional financial institutions. For banks, this means a broader role in managing crypto assets, potentially enhancing their revenue streams while adhering to the required risk management practices. The regulatory backing gives them the confidence to explore crypto services without fear of regulatory uncertainty, fostering a safer and more integrated approach to crypto-asset transactions. Despite earlier hesitations, the OCC’s decision signals a growing acceptance of cryptocurrency within the mainstream financial system. However, the full implementation of these policies will depend on how effectively banks can balance innovation with the safeguards required to protect investors and maintain financial stability. The post OCC Grants Banks Permission to Buy and Sell Custody-Held Cryptocurrencies appeared first on Cryptonews .

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