In a significant shift in policy, the US Office of the Comptroller of the Currency has announced that national banks can now engage in the buying and selling of cryptocurrency assets held in custody for their customers. The new policy, released on Wednesday, also permits banks to outsource cryptocurrency-related activities, including custody and execution services, to third-party providers, as long as they meet the regulator's safety and soundness requirements. This move marks a continuation of the OCC's evolving stance on cryptocurrency, following its March decision to reverse a long-standing policy requiring banks to seek approval from regulators before pursuing new cryptocurrency business.
According to Katherine Kirkpatrick Bos, general counsel at Starkware and former chief legal officer at Cboe Digital, the new policy signals a significant shift in the OCC's approach, effectively integrating cryptocurrency into traditional banking. The guidance also provides a boost to regulated cryptocurrency service providers, as it allows them to partner with banks.