The Office of the Comptroller of the Currency (OCC) announced in March 2025 that U.S. banks can now buy and sell crypto assets they hold in custody, expanding their financial services.
OCC's Approval for Crypto Custody
OCC issued [Interpretive Letter No. 1183](https://occ.gov/topics/charters-and-licensing/interpretations-and-actions/2025/int1183.pdf), allowing banks under its oversight to engage in crypto asset custody and transactions. Banks can now hold and trade cryptocurrencies and stablecoins under specified conditions. 'The OCC published Interpretive Letter 1183 to confirm that crypto-asset custody, certain stablecoin activities, and participation in select distributed ledger activities are permissible for national banks and federal savings associations.'
Institutional Interest in Crypto
Market participants anticipate increased institutional interest in cryptocurrencies due to enhanced regulatory clarity. The banking sector may see substantial innovations in service offerings, transforming how banks interact with digital assets. The regulatory updates could promote broader institutional participation in crypto markets. Historical trends suggest similar past actions by the OCC resulted in increased bank engagement with new asset classes, influencing market infrastructure significantly.
Review of Past OCC Legislation
Similar to [past OCC actions](https://www.occ.gov/topics/charters-and-licensing/interpretations-and-actions/2020/int1170.pdf), Interpretive Letters issued since 2020 incrementally acknowledged crypto-related banking activities, gradually expanding these permissions. Past engagements correlated with enhanced bank participation in crypto markets. Expert insights suggest that such policies encourage banks to cautiously integrate crypto services, informed by data and historical market reactions. Continued bank initiatives and technological adaptation are expected as the regulatory landscape evolves, as detailed in the [Federal Reserve report](https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230728a1.pdf).
OCC's updates indicate a significant shift in regulating banking operations with crypto assets, potentially aiding in the further development of this financial market segment.
