Key Takeaways
- Under the new regulation, banks may hold digital assets in custody, buy and sell them at the customer’s direction, and engage third-party service providers for crypto-asset functions.
- Under new guidelines, banks can execute crypto trades at the request of users
The U.S. Office of the Comptroller of the Currency (OCC) has issued fresh guidance confirming that national banks and federal savings associations are permitted to offer crypto custody and execution services to customers. The clarification was delivered via Interpretive Letter 1184, released on May 7.
Under the new regulation, banks may hold digital assets in custody, buy and sell them at the customer’s direction, and engage third-party service providers for crypto-asset functions.
These include custody, execution of trades, asset settlement, valuation, tax reporting, and recordkeeping. The OCC emphasized that such services must be offered in accordance with existing laws and applicable customer agreements.
The agency also reaffirmed that all crypto-related activities must meet the same oversight, operational, and risk standards as traditional financial services. This includes strict adherence to due diligence, cybersecurity protocols, and third-party risk management requirements. Banks are held accountable for the performance and oversight of all outsourced crypto functions, including those provided by sub-custodians.
Interpretive Letter 1184 builds on previous OCC guidance—specifically Interpretive Letters 1170 and 1183—which had already established that digital asset custody can be considered a modern extension of traditional bank custodial services.
The new letter addresses areas previously left ambiguous, especially with regards to whether banks could actively execute crypto trades at the request of clients. Under new guidelines, banks can execute crypto trades at the request of users
Under current guidance, federally regulated banks may also work with sub-custodians to store digital assets, provided these entities have robust safeguards in place.
