Key Points:
- The Office of the Comptroller of the Currency (OCC) has liberalized regulations, allowing banks to buy and sell their customers’ cryptocurrency assets.
- Institutions are now permitted to utilize third-party services for crypto-related activities.
- This directive aligns with previous OCC guidance, supported by other regulatory bodies, which had previously restricted banks from engaging in cryptocurrency transactions without prior approval.
The OCC’s recent interpretive letters signal a shift in its approach towards cryptocurrencies, permitting banks to act on behalf of their clients in trading crypto assets held in custody. Furthermore, banks can now outsource these activities to third parties, provided they meet the safety and soundness standards set by the OCC.
This new policy builds upon the agency’s earlier reversal of stringent rules that required banks to obtain authorization from government supervisors before entering the cryptocurrency space. Katherine Kirkpatrick Bos, General Counsel at Starkware, noted this shift suggests an increasing integration of cryptocurrency within traditional banking systems. According to her, the allowance for third-party involvement is advantageous for regulated crypto service providers.
