The US Office of the Comptroller of the Currency formally approves Bitcoin and cryptocurrency transactions for US banks｜Custody services also permitted.

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Key points of this article

• U.S. banks can officially offer custody and trading of cryptocurrencies.
• OCC has also authorized the outsourcing of cryptocurrency services by banks.
• The industry welcomes deregulation and expects accelerated entry of major financial firms.

Table of Contents* 1. US banks can store and trade cryptocurrencies

• 2. U.S. banks' cryptocurrency operations are officially set to be legalized.

• 2.1. OCC clarifies banks' virtual currency-related activities
• 2.2. Expectations for Banks' Entry into the Cryptocurrency Market
• 2.3. Shift in Attitude of U.S. Regulators

• 3. Voices of expectation for the expansion of cryptocurrency operations by U.S. banks

US banks can now store and trade cryptocurrencies

The Office of the Comptroller of the Currency (OCC) published new guidance on May 7, 2025, clarifying that national banks and federal savings associations can provide custody (storage) services and trading services for virtual currencies such as Bitcoin (BTC).

The new letter No. 1184 from the OCC allows banks to buy and sell virtual currencies under custody based on customer instructions, and also permits outsourcing the storage and execution services of virtual currencies (cryptographic assets) to third-party companies.

These measures are only permitted when implemented under an appropriate risk management framework, and it is emphasized that banks must provide cryptocurrency services safely and soundly while complying with relevant regulations.

This decision has garnered significant attention both within and outside the industry, as it allows banks to provide services more proactively in the cryptocurrency market, which is already utilized by over 50 million Americans.

US Banks' Cryptocurrency Operations Officially Legalized

OCC Clarifies Cryptocurrency-related Activities for Banks

This announcement from the OCC further clarifies and expands upon the policies indicated in Letter 1170 issued in 2020 (which permits banks to engage in virtual currency custody activities) and the recent Letter 1183 (which revises guidance on banks' virtual currency-related activities).

This letter outlines the specific procedures for banks to buy and sell virtual currencies on behalf of customers, and it clearly states that external specialists can be utilized when providing virtual currency services.

Banks under OCC supervision may utilize reliable third parties as sub-custodians when necessary, and they can also provide ancillary services such as record management and tax reporting.

However, OCC Acting Comptroller Rodney Hood reiterated that "banks and partner companies must conduct virtual currency and digital asset-related activities in a safe and sound manner, in compliance with applicable laws."

Expectations for banks entering the cryptocurrency market

This clarification is expected to allow U.S. banks to enter the cryptocurrency market more actively than before.

Currently, it is said that over 50 million people in the United States hold some form of cryptocurrency, and the significance of banks being able to provide services tailored to customer needs in this rapidly growing market is considered substantial.

The acting OCC Chairman stated that "the digitization of financial services is not a temporary trend, but a fundamental 'transformation'" and emphasized the importance of enabling supervised banks to safely store cryptocurrencies such as Bitcoin and execute transactions on behalf of their customers.

OCC-regulated banks may buy and sell assets held in custody and are permitted to outsource bank-permissible crypto-asset activities, including custody and execution services. pic.twitter.com/J5dEkx4WUL

— OCC (@USOCC) May 7, 2025

Banks under OCC regulation are allowed to buy and sell assets held in custody, and they are also permitted to outsource virtual currency-related activities, including custody services and execution services, that are authorized for banks.

Shift in stance by US regulators

This measure is also part of a shift in regulatory policy that previously required banks to obtain prior approval before starting virtual currency operations.

The Federal Reserve Board (FRB) and the Federal Deposit Insurance Corporation (FDIC) also successively withdrew guidance calling for a cautious stance on cryptocurrency operations announced in 2023, from March to April 2025.

This clearly indicates that regulatory authorities across the United States are supportive of banks expanding their cryptocurrency businesses.

Voices of Expectation for the Expansion of Cryptocurrency Operations by US Banks

There has been a positive response from the cryptocurrency industry and regulatory authorities regarding the recent announcement by the OCC.

Catherine Kirkpatrick Boss, the legal officer at StarkWare, a company developing ZK rollup technology, stated on X (formerly Twitter) that "these letters indicate a clear shift in the OCC's approach," expressing the view that the agency is moving towards integrating cryptocurrency into traditional banking.

Furthermore, Mr. Boss commented that "it is good news for regulated cryptocurrency-native companies (service providers)" regarding the point that banks can now utilize third-party services in providing cryptocurrency services, emphasizing that this policy shift will bring benefits to both banks and the cryptocurrency industry.

Support is also being voiced from the U.S. Congress, with the House Financial Services Committee (Republican) stating through its official X account that it "applauds the OCC's decision to clarify the permissions regarding cryptocurrency custody and trading services."

🚨NEW: The Committee applauds the @USOCC for clarifying permissible bank activities related to crypto-asset custody and execution services.

Members look forward to continuing the work needed to develop a digital asset framework that drives innovation and builds upon the success…

— Financial Services GOP (@FinancialCmte) May 8, 2025

The committee praises the OCC's response that clarifies the permissible activities of banks regarding the custody and execution services of digital assets.

The committee members are expected to continue working on the framework for digital assets to promote innovation and further develop the results of the growth-oriented and innovation-focused policies of the Trump administration.

Industry insiders expect that, with the support of regulatory authorities, the entry of major financial institutions and partnerships between banks and cryptocurrency companies will advance even further in the future.

Latest cryptocurrency news here

Source: OCC Guidance

Writing and Translation: BITTIMES Editorial Department

Thumbnail: Used under license from Shutterstock