US Banks Granted Permission to Facilitate Cryptocurrency Transactions as Regulations Ease

The US Office of the Comptroller of the Currency (OCC) issued a new interpretive letter on May 7, clarifying that national banks and federal savings associations (collectively referred to as 'banks') can conduct the sale and purchase of cryptocurrency assets under custody based on customer instructions. It also clarified that banks can outsource custody and execution services to third parties if there is an appropriate third-party risk management system. The approved services include transaction execution, record-keeping, valuation, and tax reporting.

This interpretive letter reaffirms Interpretive Letter 1170 previously issued by the OCC, explicitly stating that banks have the authority to provide cryptocurrency custody services in either a fiduciary or non-fiduciary capacity. The OCC has...