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OCC clarifies banks may buy and sell assets crypto-assets; can also outsource custody to third parties

May 8, 2025 //  by Finnovate

The OCC has clarified that institutions under its oversight can now buy and sell crypto assets on behalf of their customers.  In addition, the OCC stated that national banks may outsource crypto-asset services to third parties, including custody and trade execution, provided those third parties maintain sound risk management practices. The latest OCC letter follows a similar directive issued in March, which rescinded the 2021 policy requiring banks to seek prior supervisory approval before engaging in crypto-related services. “The services national banks may provide in relation to the cryptocurrency they are custodying may include services such as facilitating the customer’s cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, recordkeeping, valuation, tax services, reporting, or other appropriate services,” the March letter stated. It further clarified: “A bank acting as custodian may engage a sub-custodian for cryptocurrency it holds on behalf of customers and should develop processes to ensure that the sub-custodian’s operations have proper internal controls to protect the customer’s cryptocurrency.”

Meanwhile, the Federal Reserve recently dropped its supervisory guidelines that previously required American banks to notify it in advance of any crypto-asset activities. Banks are also no longer required to obtain formal approval from the Fed before engaging in stablecoin-related operations. The decisions by both US regulators reflect the broader shift toward more crypto-friendly policies under the Trump administration.

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Category: Essential Guidance

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