OCC Greenlights Crypto Services for U.S. Banks, Easing Regulatory Hurdles

The U.S. Office of the Comptroller of the Currency (OCC) has eased its stance on cryptocurrency in banking, reinforcing a significant policy shift by confirming that national banks can offer crypto-related services — including buying and selling digital assets on behalf of customers.In its newly released Interpretive Letter 1183, the OCC clarified that these institutions may also partner with third-party providers to deliver services such as crypto custody and execution, provided they maintain robust risk management systems in line with existing banking standards.The letter confirms that national banks and federal savings associations are permitted to engage in crypto-asset custody, participate in distributed ledger networks, and engage in certain stablecoin activities — without needing prior supervisory approval. This effectively reverses earlier requirements for OCC-supervised banks to first demonstrate adequate controls and seek formal non-objection before launching crypto services.“The OCC expects banks to have the same strong risk management controls in place to support novel bank activities as they do for traditional ones,” said Acting Comptroller of the Currency Rodney E. Hood. “Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology. I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”Alongside the letter, the OCC also withdrew its prior participation in two joint statements — one on crypto-asset risks and another on liquidity risks stemming from the crypto market — signaling a move away from earlier concerns about the sector’s potential instability.Katherine Kirkpatrick Bos, general counsel at StarkWare and former chief legal officer at Cboe Digital, noted on X that “these letters signal a shift in the OCC’s approach.” She added that the agency now appears to be “melding crypto into traditional banking,” and welcomed the update on third-party involvement, calling it “a boon to regulated crypto native service providers.”The OCC issued Interpretive Letter 1183 in March affirming that banks can engage in crypto-asset custody, DLT, & stablecoin activities w/out case by case approval. Today they released 1184, saying banks can buy & sell assets held in custody & can outsource crypto activities.This latest move builds on the OCC’s March reversal of a long-held policy that required banks to obtain explicit approval before launching crypto ventures — signaling an increasingly open stance toward integrating digital assets into mainstream banking.