The Office of the Comptroller of the Currency (OCC) announced in a letter on May 7th new guidance allowing national banks to buy and sell crypto on behalf of their customers as long as those assets are already held in custody by the bank.
The move marks a very clear sign that U.S. federal regulators are starting to embrace a softer stance, giving a more defined role for traditional banks in the new digital economy. The OCC, the U.S. regulator of banks, made it clear that this activity is permissible as part of a bank’s fiduciary duties. It allows banks to essentially act as agents and execute trades for their customers.
The OCC further stated that banks must remain compliant with all existing expectations around risk management and AML laws and obligations. The guidance doesn’t allow banks to trade crypto on their own behalf. It also does not grant permission to speculate around crypto. What it does is offer a green light for transactions initiated by customers. This clarification helps to bring greater understanding and legitimacy to banks’ roles around digital assets.
Industry pundits see this as a step towards bridging the gap between traditional and digital assets while allowing banks to meet the rising demand for safe, secure, and regulated crypto services.
This latest development further underscores the advancing integration of cryptocurrencies into the traditional financial infrastructure.
Stay with OutBanked for the latest developments as U.S. banking regulators continue to shape the future of crypto policy.
