OCC Greenlights Banks to Dive into Crypto—Custody, Trading Now Fair Game

Wall Street’s old guard just got a backstage pass to the crypto revolution. As of 2025-05-08, OCC-regulated banks can officially buy, sell, and custody digital assets—no more watching from the sidelines.

Finally, banks can pretend they invented Bitcoin. The regulatory dam has broken, letting traditional finance wade into waters crypto natives have surfed for years. Custody services? Check. Trading desks? Inevitable.

Watch for the stampede of suits trying to ’disrupt’ the space they spent a decade dismissing. The irony’s thicker than a blockchain ledger.

The Fed, OCC, and SEC: The pro-crypto shift in banking regulations

The change in the OCC’s stance reflects a broader trend of federal organizations embracing crypto in the wake of the Trump administration friendlier stance towards the industry. Banks now have more freedom to get involved with the crypto industry following recent regulatory changes.

In late April, the U.S. Federal Reserve announced that it has removed its requirement for state banks to give a notice before participating in crypto-related activities.

Not only that, the Fed also withdrew its 2023 guidelines which limited how banks could deal with stablecoins. In addition, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, followed suit by retracting from two joint statements made that same year.

In March this year, a number crypto firms were reportedly interested in applying for banking licenses to expand their businesses and potentially reduce borrowing costs. Not to mention, a bank charter would increase their legitimacy as a business operation in the eyes of customers.

Last January, the Securities and Exchange Commission removed a rule that had forced banks holding crypto to list it as a liability, easing pressure on financial institutions.