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The US Office of the Comptroller of the Currency (OCC) has affirmed that banks under its oversight can transact in crypto on behalf of clients and delegate certain crypto-related functions to external entities.
Acting comptroller Rodney Hood stated in a May 7 correspondence that banks and federal savings institutions are permitted to buy and sell crypto they possess in custody at the behest of customers.
The OCC noted in a news release that financial institutions can also delegate allowable bank-related crypto operations, including custody and execution tasks, to third-party vendors in accordance with relevant laws.
“In addition, these banks may offer other custody solutions, such as record keeping, tax or reporting assistance for their clients,” Hood mentioned in a May 7 video shared on X.
OCC-regulated banks have the ability to buy and sell assets held in custody and are allowed to delegate bank-permissible crypto-asset functions, including custody and execution services. https://t.co/0ScQdgNaS6 pic.twitter.com/J5dEkx4WUL
— OCC (@USOCC) May 7, 2025
“OCC banks might utilize a sub-custodian to offer the same services, provided that suitable third-party risk management protocols are in place, while a variety of cryptocurrency and digital asset activities may be executed by banks and their external partners,” he elaborated.
Earlier, the OCC relaxed its position on bank engagement with crypto on March 7 by granting approval for crypto-asset custody, certain stablecoin functions, and involvement in independent node verification networks like distributed ledgers.
“Over 50 million Americans owning some form of cryptocurrency signifies that this digitization of financial services is not merely a trend; it’s a transformation,” Hood stated.
The OCC operates as an independent bureau within the US Department of the Treasury that regulates and oversees all national banks as well as the federal branches of international banks.
Industry backs the OCC correspondence
Katherine Kirkpatrick Bos, chief legal officer at ZK-rollup developer StarkWare, remarked that the letters indicate a “change in the OCC’s stance,” which now seems to prioritize the integration of crypto into banking systems.
“More guidelines will provide additional clarity [and] enable banks to re-engage with crypto [without] the worry of existential regulatory risk,” she noted.
She emphasized that the OCC’s “clear authorization today permitting banks to delegate bank-permissible crypto-assets is a significant advantage for regulated crypto-native service providers.”
The chief policy officer at crypto exchange Coinbase, Faryar Shirzad, also commended the initiative, stating in a May 7 post on X, Hood’s dedication to “regulatory clarity, along with his commitment to supervisory best practices and compliance with the law,” is valued.
The Trump administration has adopted a more favorable stance towards crypto since assuming office in January.
Related: The lessons learned at Operation Chokepoint 2.0 Congressional hearings
In April, the US Federal Reserve announced it was retracting guidance that had been designed to discourage banks from participating in crypto and stablecoin efforts.
US President Donald Trump also signed a joint congressional resolution on April 11, rescinding a rule from the Biden administration that would have mandated decentralized finance protocols to report transactions to the Internal Revenue Service.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
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