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American national banks are now legally permitted to purchase and trade crypto on behalf of their clients. This decision was made on Wednesday in the form of arevised interpretive letter from the Office of the Comptroller of the Currency (OCC), removing former regulatory obstacles and enabling banks to proceed with digital asset services.
Banks Allowed To Offer Complete Crypto Services
According to the OCC direction, federal savings associations and national banks can now provide a full range of crypto services. This includes buying and selling digital assets, converting them to US dollars, facilitating settlements, maintaining customer records, and even assisting with asset valuations and tax reporting.
These services can be conducted by the banks themselves or in cooperation with external service providers. In either case, the OCC emphasized that banks must implement strong internal controls and risk management strategies.
First page of the OCC Interpretive Letter. Source: OCC
The new guidance also indicates a more extensive shift in the perspective of US regulators regarding crypto. On March 7, the OCC repealed a regulation that had required banks to secure supervisory non-objection before entering the realm of digital currencies.
Subsequently, on April 24, the Federal Reserve reversed its 2022 policy that mandated state member banks to inform beforehand before engaging in crypto activities. Faryar Shirzad, Coinbase’s Chief Policy Officer, remarked that this new trajectory provides greater clarity. He also acknowledged Acting Comptroller Rodney Hood for his role in facilitating this advancement.
Immense thanks to Acting @USOCC Comptroller Rodney Hood for clarifying that national banks can offer the full spectrum of crypto services. We value Comptroller Hood’s commitment to regulatory transparency, along with his adherence to supervisory best practices and the… pic.twitter.com/i1MyKc4T1I
— Faryar Shirzad 🛡️ (@faryarshirzad) May 7, 2025
Banks Must Respond To Customer Requests
The OCC’s letter also clarifies that banks can act on a customer’s directive. Therefore, if someone holds crypto with their bank and wishes to sell it, the bank can carry out the transaction directly. This boosts customers’ autonomy and facilitates easier crypto transactions through familiar banking channels.
This clarification is based on prior OCC guidance but now eliminates any ambiguity. Banks are not obliged to wait for special authorization to deliver these services, which could hasten adoption.
As of now, the market capitalization of cryptocurrencies stood at $3.23 trillion. Chart: TradingView
Risk Management Guidelines For External Providers
The OCC guidance also outlines stipulations for how banks should interact with third-party crypto service providers. When banks outsource functions such as crypto custody or transaction processing, due diligence must be performed and oversight established.
Image: FIU Business
Sub-custodians particularly must adhere to security protocols to protect customer assets. The OCC expects banks to hold such partners to the same standards they apply in other banking sectors. Risk frameworks should align with current regulations to protect customers from potential mismanagement.
Crypto’s Integration Into The Banking Norm
This declaration sends a strong message that crypto is no longer off-limits for mainstream banks. By granting banks more freedom to engage without needing prior approval, the OCC is indicating a more welcoming attitude toward digital asset services within regulated finance.
Whether this leads to a surge of banks entering the sector remains uncertain. However, the guidelines are established, the gateway is open, and customers can now opt for crypto services from the same banks where they maintain their checking accounts.
Featured image from The Information, chart from TradingView
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