OCC Reaffirms Banks’ Authority to Offer Crypto Services Without Prior Approval

The Office of the Comptroller of the Currency (OCC) has clarified that federally chartered banks and savings associations may provide cryptocurrency custody and execution services without needing prior approval. The guidance, issued through Interpretive Letter 1184 on May 7, expands on previous rulings and confirms that institutions can engage in these activities through third-party providers.

Banks are permitted to buy and sell digital assets at customer direction, as well as outsource functions like custody and trade execution. These services must adhere to existing risk management frameworks, including due diligence, third-party oversight, and cybersecurity standards comparable to traditional finance.

The decision removes regulatory ambiguity for banks seeking to participate in crypto markets, potentially accelerating institutional adoption. It comes as major financial institutions increasingly explore digital asset offerings amid growing client demand.