OCC Confirms Banks Can Trade, Custody Crypto for Customers
On Wednesday, May 7, 2025, Law360 reported that the Office of the Comptroller of the Currency (OCC) issued guidance affirming that national banks and federal savings associations may buy and sell cryptocurrencies on behalf of customers and delegate custody services to third-party providers, reinforcing a position initially outlined in 2020.
The OCC’s interpretive letter, issued by Acting Comptroller Rodney Hood, clarified that banks can execute transactions involving digital assets held in custody, as directed by customers and in accordance with legal and contractual obligations. This includes converting digital assets to fiat currency. The guidance also permits banks to engage third-party sub-custodians for holding customers’ digital assets, provided they implement robust risk management practices.
The letter emphasized that all crypto-related custody activities, whether conducted directly or through a sub-custodian, must be performed safely and in compliance with applicable laws. This guidance builds on a March 2025 OCC letter that revoked Biden-era supervisory requirements and reinstated interpretations from the first Trump administration.
Previous guidance, notably Interpretive Letter 1183, eliminated a 2021 requirement for banks to demonstrate adequate controls before engaging in crypto activities. It also reaffirmed three earlier OCC interpretations from 2020, issued under then-Acting Comptroller Brian Brooks, which authorized banks to provide custody for digital assets, hold dollar deposits backing stablecoins, and conduct specific blockchain-based payment activities. A footnote in one of those letters, Interpretive Letter 1170, had already indicated that banks could offer execution services for crypto assets in custody and use sub-custodians.
The May 2025 guidance appears to respond to a request for confirmation that the 2020 interpretation remains valid. The OCC’s stance aligns with a broader shift in banking regulators’ approach to cryptocurrencies under President Donald Trump’s administration, which has shown support for the crypto industry.
Since the change in administration, the OCC, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) have each withdrawn crypto-specific supervisory review processes. Additionally, the agencies rescinded joint statements that previously warned banks against participating in crypto activities. In April 2025, the Federal Reserve announced it would collaborate with the OCC and FDIC to explore whether further guidance is needed to foster innovation in the sector, though no specific plans were detailed.
Source: Law360
