OCC Allows Banks To Buy, Sell Crypto Assets

In a significant move towards integrating cryptocurrency services into traditional banking, the United States Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184 on May 7, 2025. This directive permits national banks and federal savings organizations to buy and sell cryptocurrency assets on behalf of their clients. The ruling also allows banks to outsource custody and execution services to third parties, provided they implement robust risk management practices.

This latest guidance from the OCC builds on previous directives, specifically Interpretive Letters 1170 and 1183. Interpretive Letter 1170, issued in July 2020, initially clarified that banks could offer crypto custody services, treating them as an extension of traditional bank custody services. Interpretive Letter 1183, released in February 2025, further expanded the scope of permissible activities, including crypto-asset custody, stablecoin functions, and involvement in distributed ledger technology, as long as adequate risk controls are in place.

The OCC’s May 2025 guidance marks a pivotal shift in regulatory stance, eliminating the need for banks to seek supervisory approval for crypto-related activities. This move aligns with broader regulatory changes aimed at simplifying banks’ participation in the digital asset world. In March 2025, the OCC had already removed the requirement for prior non-objection by supervisors for crypto-related services, treating them similarly to other banking activities.

The recent ruling underscores the importance of third-party risk management in outsourcing crypto services. Banks remain responsible for regulating these providers to safeguard customer assets and comply with legal requirements. This regulatory shift is part of collaborative efforts by U.S. regulatory agencies to promote the incorporation of digital assets. For instance, supervisory letters from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), which had previously limited banks’ involvement with crypto, have been revised to support industry growth.

President Trump's Executive Order 14178, issued in January 2025, further loosened regulations on digital assets and mandated the proposal of a federal regulatory framework within 180 days. The OCC’s guidance is a step towards achieving this regulatory clarity, enabling financial institutions to meet the growing demand for cryptocurrency services without significant infrastructure investments. By allowing banks to outsource these services while adhering to regulations, the ruling provides a practical solution for banks looking to expand their crypto offerings.