U.S. Banks Can Now Offer Crypto Services Without Approval—OCC Confirms

On May 7, the U.S. Office of the Comptroller of the Currency (OCC) confirmed that federally chartered banks and savings associations can now offer crypto-related services, like custody and trade execution, without prior regulatory approval, as long as they comply with risk and cybersecurity protocols.

This decision, outlined in Interpretive Letter 1184, marks a significant step in integrating digital assets into traditional finance and removes Biden-era restrictions that previously required institutions to obtain a “letter of no objection.”

Crypto Custody and Trade Execution Now Mainstream

The OCC’s new guidance expands on its earlier letters (1170 and 1183), formally permitting trade execution, crypto custody, and sub-custodian partnerships. The update not only reinforces the legality of these services but also allows them to be outsourced to third-party providers, provided institutions maintain full compliance with federal laws.

This move follows the OCC’s March policy update that eliminated pre-approval requirements, streamlining the process for banks to enter the crypto space responsibly.

U.S. Lawmakers Praise OCC’s Pro-Crypto Shift

The House Financial Services Committee called the move “a step forward in building a digital asset regulatory framework,” highlighting how it aligns with the pro-growth policies championed during the Trump administration.

Senator Cynthia Lummis stated that the U.S. must “embrace digital assets fully or risk falling behind.” Legal experts like Katherine Kirkpatrick Bos see the OCC’s update as a turning point in normalizing crypto within U.S. banking.

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Why This Matters for the Crypto Industry

• No more “no objection” letters needed: Banks can proceed directly with crypto services.
  
• Third-party providers are allowed: Enables collaboration with regulated crypto firms.
  
• Custody and trade execution approved: Lays groundwork for full-service crypto banking.
  

With this, the OCC has opened the door to mainstream adoption of crypto services across the U.S. banking sector—an important shift as the global digital asset race accelerates.

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