Banks Are Allowed to Trade Customers’ Custodied Crypto Assets.

The U.S. Office of the Comptroller of the Currency (OCC), which oversees national banks, has shifted its previous stance against cryptocurrency in banking. They have now issued interpretive letters allowing these banks to purchase and sell cryptocurrency assets at the requests of their clients.

The updated policy that the OCC shared recently also indicates that banks may delegate cryptocurrency tasks to external entities, including those related to custody and management services. If all activities satisfy the regulator’s safety requirements, banks are granted increased flexibility in engaging with cryptocurrencies.

This latest change comes on the heels of the OCC’s decision in March to reverse a long-standing protocol that required banks to consult their governmental supervisors before initiating new cryptocurrency services. Katherine Kirkpatrick Bos, general counsel at Starkware and former legal chief at Cboe Digital, remarked on social media that this indicates a transition in the OCC’s perspective, integrating cryptocurrency within conventional banking frameworks. The clarification regarding third-party collaborations is particularly advantageous for regulated cryptocurrency service providers.