Crypto Revolution: OCC Greenlights Banks for Buying, Selling, and Safeguarding!

OCC Embraces Crypto: Banks Can Now Offer custody Services

The Office of the Comptroller of the Currency (OCC) has changed its approach to cryptocurrencies. it now allows banks to buy and sell crypto on behalf of their customers. This shift means banks can also provide crypto custody services.

Acting Comptroller Rodney Hood said crypto is no longer just a trend. He calls it a “conversion.” The OCC now permits banks to engage in crypto-related activities. These include buying and selling crypto held in custody.Banks can also outsource crypto custody to third parties.

Though, these services must meet OCC’s safety standards. Hood stressed that banks must conduct crypto activities safely and legally.

OCC-regulated banks can offer other crypto-related services. These include record keeping, tax, and reporting services. The OCC’s May 7 document clarified this stance. It said banks can act as custodians and provide services like transaction settlement and trade execution.

This change reflects a broader trend of federal organizations embracing crypto.The U.S. Federal Reserve recently removed its requirement for state banks to notify before engaging in crypto activities.The Fed also withdrew its 2023 guidelines on stablecoins.

The Securities and Exchange Commission (SEC) also removed a rule that forced banks to list crypto as a liability. This easing of regulations gives banks more freedom to get involved in the crypto industry.

These changes could lead to more crypto firms applying for banking licenses. This would increase their legitimacy and possibly reduce borrowing costs.