The Currency of the Currency (OCC) clarifying On 7 May, federally chartered banks and savings associations can offer crypto services, namely detention and implementation, including through external providers, provided that they adhere to solid risk management practices and legal compliance.
The clarification, issued via interpretative letter 1184, confirms and expands on earlier guidelines with regard to crypto activities.
The OCC stated that institutions can buy and sell assets that are kept in custody in the direction of the customer and can outsource crypto-asset functions of the customer, including guardianship and trade execution services, to third parties.
These activities remain subject to the same supervision and operational standards that are applied to traditional financial services, including due diligence, external risk management and cyber security protocols.
The letter builds on earlier performances in interpretative letters 1170 and 1183. It also strengthens the opinion of the regulator that digital assets services can fall under the reach of permitted banking activities when they are carried out safely and in accordance with the applicable regulations.
Regulatory context and policy shift
The clarification follows a policy change Announced for the first time by the OCC on March 7that removed the requirement for previous approval of the regulations for certain crypto-related activities.
That earlier announcement had deviated from earlier supervisory practices under the administration of former President Joe Biden, when banks had to inform examiners and received a letter of no objection before they enter into crypto services.
In his update of March, the OCC confirmed that National Banks can deal with the activities of Crypto-Axette Voogdij and Stablecoin and even participate as validators on distributed ledger networks.
The updated guidelines have effectively reversed earlier warning statements and removed procedural obstacles, so that banks can include crypto services in their activities without requesting prior approval.
At the time, the acting competent of the currency Rodney Hood said that the OCC was aimed at streamlining supervision while retaining high safety standards.
Reinforcement of permission
The letter of 7 May builds on that policy foundation, whereby the implementing services and sub-requirement relationships are formally integrated into the scope of authorized activities.
The point of view repeated that settings should manage the corresponding risks, whether they deal with crypto services internally or via third parties.
Interpretative letter 1184 again confirms the permission for federally regulated banks to enter digital assets, provided that these activities are carried out with suitable guarantees and in accordance with federal bank legislation.
The updated position of the OCC confirms Crypto services as permitted among existing authorities and signals continuous regulatory standardization of digital assets services within the US banking sector.