Key Takeaways
- The OCC confirms U.S. banks can custody and trade Bitcoin for customers.
- Banks may outsource custody and execution services to third parties under risk guidelines.
- This marks a shift in U.S. banking policy amid growing federal support for Bitcoin integration.
The U.S. Office of the Comptroller of the Currency (OCC) confirmed this week that national banks and federal savings associations are allowed to custody and trade Bitcoin on behalf of their customers.
The clarification also permits banks to outsource permissible crypto activities, including custody and execution services, to third parties.
Statement from acting Comptroller Rodney Hood
In a May 7 statement, Acting Comptroller Rodney Hood said banks can carry out these services at the direction of customers.
He added in a video posted to X:
Additionally, these banks may provide other custody services, including record keeping, tax or reporting services for their customers.
OCC-regulated banks may buy and sell assets held in custody and are permitted to outsource bank-permissible crypto-asset activities, including custody and execution services. https://t.co/0ScQdgNaS6 pic.twitter.com/J5dEkx4WUL
— OCC (@USOCC) May 7, 2025
Emphasis on third-party risk management
The OCC emphasized that banks must ensure proper third-party risk management when using sub-custodians or external providers.
These developments build on prior guidance from March 7, which first signaled a loosening of restrictions on crypto-related banking activities, including support for stablecoins and participation in distributed ledger networks.
Industry reactions
Hood stated:
More than 50 million Americans hold some form of cryptocurrency. This digitalization of financial services is not a trend; it is a transformation.
StarkWare general counsel Katherine Kirkpatrick Bos welcomed the move, saying it marks a shift in the OCC’s stance:
More guidance will give further clarity and will allow banks to re-enter crypto without the fear of existential regulatory risk.
Why is this so imp? These letters signal a shift in the OCC's approach, which now looks like a focus on integrating crypto w/in trad banking frameworks. More guidance will give further clarity & will allow banks to re-enter crypto w/out the fear of existential regulatory risk.
— Katherine Kirkpatrick Bos (@kkirkbos) May 7, 2025
Coinbase policy chief Faryar Shirzad also praised Hood’s focus on clarity and legal adherence.
Broader federal policy changes
This policy update comes amid broader federal reversals of previous anti-crypto stances, including April actions by the Federal Reserve and a congressional resolution signed by President Trump.
