US banks can handle customer crypto assets held in custody, regulator confirms

The US Office of the Comptroller of the Currency (OCC) has confirmed banks nether its jurisdiction tin commercialized crypto connected behalf of customers and outsource immoderate crypto activities to 3rd parties. 

Acting comptroller Rodney Hood said successful a May 7 missive that banks and national savings associations can bargain and merchantability crypto they clasp successful custody astatine customers’ direction.

The OCC added successful a property merchandise that fiscal institutions tin besides outsource bank-permissible crypto activities, including custody and execution services, to 3rd parties successful compliance with applicable law.

“Additionally, these banks whitethorn supply different custody services, including grounds keeping, taxation oregon reporting services for their customers,” Hood said successful a May 7 video posted to X. 

OCC-regulated banks whitethorn bargain and merchantability assets held successful 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 banks whitethorn usage a sub-custodian to supply the aforesaid services taxable to due third-party hazard absorption practices, portion a scope of cryptocurrency and integer plus activities whitethorn beryllium performed by banks and their 3rd parties,” helium added. 

Previously, the OCC eased its stance connected however banks tin prosecute with crypto connected March 7 by giving the greenish airy for crypto-asset custody, immoderate stablecoin activities, and information successful autarkic node verification networks specified arsenic distributed ledgers. 

“More than 50 cardinal Americans clasp immoderate signifier of cryptocurrency. This digitalization of fiscal services is not a trend; it is simply a transformation,” Hood said. 

The OCC is an autarkic bureau wrong the US Department of the Treasury that regulates and supervises each nationalist banks and besides the national branches of overseas banks.

Industry supports the OCC letters 

Katherine Kirkpatrick Bos, wide counsel astatine ZK-rollup developer StarkWare, said the letters awesome a “shift successful the OCC’s approach,” which present appears to favour a absorption connected integrating crypto wrong banking frameworks. 

“More guidance volition springiness further clarity [and] volition let banks to re-enter crypto [without] the fearfulness of existential regulatory risk,” she said. 

She added the OCC’s “explicit support contiguous allowing banks to outsource bank-permissible crypto-assets is simply a boon to regulated crypto autochthonal work providers.” 

Source: Katherine Kirkpatrick Bos

Chief argumentation serviceman astatine crypto speech Coinbase, Faryar Shirzad, besides applauded the move, saying successful a May 7 station to X, Hood’s committedness to “regulatory clarity, arsenic good arsenic his adherence to supervisory champion practices and the missive of the law,” is appreciated. 

The Trump medication has taken a friendlier cognition toward crypto since coming into powerfulness successful January. 

Related: The lessons learned astatine Operation Chokepoint 2.0 Congressional hearings

In April, the US Federal Reserve announced it was withdrawing guidance that was created to deter banks from engaging successful crypto and stablecoin activities.

US President Donald Trump besides signed a associated legislature solution connected April 11, overturning a Biden administration-era regularisation that would person required decentralized concern protocols to study transactions to the Internal Revenue Service.

Magazine: SEC’s U-turn connected crypto leaves cardinal questions unanswered