OCC Greenlights Banks to Dive into Crypto—No Permission Slips Needed

The Office of the Comptroller of the Currency (OCC) just doubled down on its stance: U.S. banks can now offer crypto custody, trading, and other services without begging for approval first. Talk about cutting red tape with a blockchain-powered machete.

This isn’t new policy—it’s a fiery reaffirmation of 2020 guidance, signaling regulators won’t backpedal despite crypto’s wild volatility (or bankers’ sweaty palms). The move effectively dares traditional finance to stop spectating and start participating.

Of course, Wall Street will still find ways to overcomplicate things—probably by charging 2% management fees on Bitcoin holdings. Some habits die harder than others.

Regulatory context and policy shift

The clarification follows a policy change, which removed the requirement for prior regulatory approval for certain crypto-related activities.

That earlier announcement departed from previous supervisory practices under former President Joe Biden’s administration, when banks needed to notify examiners and receive a letter of no objection before engaging in crypto services.

In its March update, the OCC confirmed that national banks may engage in crypto-asset custody and stablecoin activities and even participate as validators on distributed ledger networks. 

The updated guidance effectively reversed previous cautionary statements and removed procedural hurdles, allowing banks to incorporate crypto services into their operations without seeking advance approval.

At the time, acting comptroller of the currency Rodney Hood said the OCC aimed to streamline oversight while maintaining high safety standards. 

Reinforcing permission

The May 7 letter builds on that policy foundation, formally integrating execution services and sub-custodian relationships into the scope of authorized activity.

The OCC reiterated that institutions must manage associated risks, whether they handle crypto services internally or through third parties.

Interpretive Letter 1184 reaffirms the permission to federally regulated banks to engage with digital assets in a custodial capacity, provided these activities are executed with appropriate safeguards and in compliance with federal banking law. 

The OCC’s updated position affirms crypto services as permissible under existing authorities and signals continued regulatory normalization of digital asset services within the US banking sector.