US Banks Get Green Light for Crypto Services

The Office of the Comptroller of the Currency (OCC) has issued revised guidance allowing US national banks and federal savings associations to offer a full range of cryptocurrency services to their customers. This includes buying, selling, converting, and settling crypto transactions, maintaining customer records, and even supporting asset valuations and tax reporting. Banks can manage these services in-house or through third-party providers, but robust internal controls and risk management procedures are mandatory in both cases. This decision marks a significant shift in US crypto regulation. Previously, banks needed pre-approval for crypto activities. This new guidance eliminates that hurdle, accelerating potential crypto adoption. The OCC’s clarification also permits banks to act directly on customer instructions for crypto transactions, enhancing customer control and convenience. The new rules also address risk oversight for third-party providers, requiring banks to conduct due diligence and implement strict oversight, especially for sub-custodians handling customer assets. These providers must meet the same security standards as those applied to other banking segments. This regulatory green light signals a more accepting attitude towards crypto within the traditional banking sector. While the extent of bank participation remains uncertain, the path is now clear for customers to access crypto services through their established banking relationships. The move is largely viewed as positive, bringing increased clarity and potentially fostering wider crypto adoption. Coinbase’s Chief Policy Officer, Faryar Shirzad, praised the OCC’s move for bringing increased clarity to the regulatory landscape. The OCC’s action follows the Federal Reserve’s recent reversal of its 2022 policy requiring prior notice from state member banks for crypto involvement.

(Source: https://bitcoinist.com/us-banks-get-crypto-boost-as-occ-confirms-service-approval/)