OCC Confirms Crypto Exchange Activities for Banks
The Office of the U.S. Currency Secretary (OCC) has officially stated that banks under its oversight are allowed to exchange cryptocurrencies for their clients. Additionally, they can delegate some crypto-related tasks to outside firms.
Rodney Hood, the acting chief, mentioned in a letter dated May 7 that both banks and Federal Savings Associations can buy and sell digital currencies on behalf of customers.
The OCC also noted in a press release that financial institutions are permitted to outsource acceptable cryptocurrency activities, such as custody and execution services, to third parties, ensuring compliance with existing laws.
“These banks can also offer additional services to clients, including record keeping, tax compliance, and reporting,” Hood explained in a May 7 video.
“Regulated banks can buy and sell digital assets and may outsource acceptable crypto activities, including custody and execution services,” the OCC stated.
Hood further added that banks might use subcustodians for similar services, provided they adhere to proper third-party risk management practices. Various cryptocurrency and digital asset tasks can be handled by the banks and their partners.
Previously, the OCC had relaxed its guidelines on March 7, allowing banks to engage more readily with cryptocurrencies, including custody of digital assets and participation in decentralized networks.
“More than 50 million Americans own some form of cryptocurrency. This shift towards digital financial services is not just a fad; it represents a significant change,” Hood remarked.
The OCC functions as an independent office within the U.S. Treasury Department, overseeing federal branches of both national and foreign banks.
Industry Reactions to OCC’s Guidance
Katherine Kirkpatrick Bos, General Counsel at ZK-Rollup Developer Starkware, conveyed that this guidance signifies a meaningful shift in the OCC’s perspective, focusing now on integrating cryptocurrencies into the existing banking framework.
“Clearer guidance will enable banks to cautiously re-enter the crypto space without being overwhelmed by regulatory fears,” she stated.
She noted that the OCC’s permit for banks to outsource cryptocurrency activities is a significant win for regulated service providers in the crypto sector.
Faryar Shirzad, Chief Insurance Officer at Crypto Exchange Coinbase, praised the recent developments, applauding Hood’s efforts for clarity in regulation and compliance.
The current administration appears to have a favorable stance on cryptocurrencies, a sharp contrast to previous restrictions.
In April, the U.S. Federal Reserve also rescinded guidance that had previously limited banks’ involvement in cryptocurrency ventures. Furthermore, President Trump signed a resolution on April 11 that rolled back rules from the Biden administration, which had mandated reporting of certain transactions to the IRS.
