OCC Grants Banks Expanded Crypto Trading and Custody Permissions

The U.S. Office of the Comptroller of the Currency has pivoted decisively toward crypto integration, authorizing national banks to buy, sell, and custody digital assets on behalf of customers. Wednesday’s interpretive letters mark a regulatory watershed—financial institutions may now execute crypto transactions without prior approval, provided they maintain compliance with safety protocols.

Custodial flexibility takes center stage in the updated guidance. Banks can leverage third-party providers for asset storage and trade execution, effectively outsourcing crypto operations while retaining regulatory accountability. This follows the OCC’s March decision to eliminate mandatory pre-approval for crypto initiatives, dismantling a significant barrier to institutional participation.