The Workplace of the Comptroller of the Forex (OCC) clarified on Might 7 that federally chartered banks and financial savings associations could provide crypto providers, particularly custody and execution, together with by way of third-party suppliers, supplied they adhere to sound danger administration practices and authorized compliance.
The clarification, issued by way of Interpretive Letter 1184, confirms and expands on earlier steerage associated to crypto actions.
The OCC acknowledged that establishments could purchase and promote property held in custody on the buyer’s course and outsource crypto-asset features, together with custody and commerce execution providers, to 3rd events.
These actions stay topic to the identical oversight and operational requirements utilized to conventional monetary providers, together with due diligence, third-party danger administration, and cybersecurity protocols.
The letter builds on prior OCC steerage outlined in Interpretive Letters 1170 and 1183. It additionally reinforces the regulator’s view that digital asset providers can fall throughout the scope of permissible banking actions when performed safely and in compliance with relevant rules.
Regulatory context and coverage shift
The clarification follows a coverage change first introduced by the OCC on March 7, which eliminated the requirement for prior regulatory approval for sure crypto-related actions.
That earlier announcement departed from earlier supervisory practices underneath former President Joe Biden’s administration, when banks wanted to inform examiners and obtain a letter of no objection earlier than participating in crypto providers.
In its March replace, the OCC confirmed that nationwide banks could have interaction in crypto-asset custody and stablecoin actions and even take part as validators on distributed ledger networks.
The up to date steerage successfully reversed earlier cautionary statements and eliminated procedural hurdles, permitting banks to include crypto providers into their operations with out looking for advance approval.
On the time, appearing comptroller of the foreign money Rodney Hood mentioned the OCC aimed to streamline oversight whereas sustaining excessive security requirements.
Reinforcing permission
The Might 7 letter builds on that coverage basis, formally integrating execution providers and sub-custodian relationships into the scope of licensed exercise.
The OCC reiterated that establishments should handle related dangers, whether or not they deal with crypto providers internally or by way of third events.
Interpretive Letter 1184 reaffirms the permission to federally regulated banks to interact with digital property in a custodial capability, supplied these actions are executed with applicable safeguards and in compliance with federal banking legislation.
The OCC’s up to date place affirms crypto providers as permissible underneath present authorities and alerts continued regulatory normalization of digital asset providers throughout the US banking sector.