Banks receive green light for crypto custody services in 2025

The Office of the Comptroller of the Currency (OCC) has confirmed that US banks can now handle customer crypto assets in custody and engage in a range of digital asset activities without needing prior supervisory approval.

This regulatory shift was formalised in Interpretive Letter 1183, issued on March 7, 2025, under Acting Comptroller Rodney Hood, which rescinded the previous requirement for banks to obtain written non-objection before participating in crypto-related activities.

According to the OCC, national banks and federal savings associations are permitted to provide crypto custody, hold stablecoin reserves, and participate in blockchain networks, provided these activities are conducted in a safe and sound manner and comply with applicable law.

The updated guidelines also allow banks to outsource crypto-related services, such as custody and execution, to third parties, as long as proper risk management practices are in place.

“OCC banks may use a sub-custodian to provide the same services subject to appropriate third-party risk management practices, while a range of cryptocurrency and digital asset activities may be performed by banks and their third parties,” Hood stated.

The OCC’s new approach marks a departure from the more restrictive policies of recent years, notably those introduced in 2021, which required banks to seek supervisory approval before engaging in crypto activities.

Industry experts have welcomed the move as a step toward integrating crypto within traditional banking frameworks.

“More guidance will give further clarity [and] will allow banks to re-enter crypto [without] the fear of existential regulatory risk,” noted Katherine Kirkpatrick Bos, general counsel at StarkWare.

The OCC emphasised that its staff has increased expertise in supervising crypto-related activities and will continue to monitor these activities as part of its ongoing oversight.