American national banks are now legally allowed to buy and sell crypto on behalf of their customers. The ruling was made on Wednesday in the form of a revised interpretive letter from the Office of the Comptroller of the Currency (OCC), eliminating previous regulatory hurdles and allowing banks to go ahead with digital asset services.
Banks Permitted To Provide Full Crypto Services
Under the OCC guidance, federal savings associations and national banks may now offer the full array of crypto services. That would encompass buying and selling digital assets, converting them into US dollars, making settlements, maintaining customer records, and even supporting asset valuations and tax reporting.
These services may be managed either by the banks themselves or in collaboration with third-party providers. But in both instances, the OCC was unambiguous: banks need to have robust internal controls and risk management procedures.
First page of the OCC Interpretive Letter. Source: OCC
The new guidance also indicates a broader change in the way US regulators are thinking about crypto. On March 7, the OCC eliminated a rule that had compelled banks to obtain supervisory non-objection before making a foray into digital currencies.
Then on April 24, the Federal Reserve backtracked on its 2022 policy mandating state member banks to provide prior notice before becoming involved in crypto activities. According to Faryar Shirzad, Coinbase’s Chief Policy Officer, this new direction brings more clarity. He also credited Acting Comptroller Rodney Hood with assisting to advance it.
Enormous thanks to Acting @USOCC Comptroller Rodney Hood for further clarifying that national banks can provide a full range of crypto services. We appreciate Comptroller Hood’s commitment to regulatory clarity, as well as his adherence to supervisory best practices and the… pic.twitter.com/i1MyKc4T1I
— Faryar Shirzad 🛡️ (@faryarshirzad) May 7, 2025
Banks Must Act On Customer Direction
The OCC’s letter also makes it clear that banks can act on a customer’s instruction. So if one holds crypto with their bank and wishes to sell the crypto, then the bank can execute the transaction directly. This enhances customers’ control and paves the way for easier crypto transactions using well-known banking conduits.
This explanation is based on previous guidance from the OCC, but now eliminates any uncertainty. Banks are not required to wait for special approval to provide these services, which may accelerate adoption.
As of today, the market cap of cryptocurrencies stood at $3.23 trillion. Chart: TradingView
Risk Oversight Rules For Outside Providers
The OCC guidance also establishes requirements for how banks are to deal with third-party crypto service providers. In the event that banks outsource activities such as crypto custody or transaction facilitation, due diligence needs to be conducted and oversight instituted.
Image: FIU Business
Sub-custodians, especially, need to adhere to security protocols to safeguard customer assets. Banks are expected by the OCC to hold such partners to the same standards they apply in other banking segments. Risk frameworks need to be consistent with current regulations to safeguard customers from possible mishandling.
Crypto’s Path Into The Banking Mainstream
This announcement is a strong message that crypto is no longer taboo for mainstream banks. By providing banks with more latitude to engage without the need for prior approval, the OCC is signaling a more embracing attitude toward digital asset services within regulated finance.
Whether that leads to a flood of banks into the business is uncertain. But the guidelines are in place, the door is open, and customers can now choose to get crypto services from the same banks where they hold their checking accounts.
Featured image from The Information, chart from TradingView
