🚨 US Federal Regulators Greenlight Banks to Buy, Sell, and Custody Cryptocurrency 🚨
In a landmark shift, US federal regulators have clarified that regulated banks can now buy, sell, and custody cryptocurrency for their customers-without needing prior approval. This move, announced in May 2025, marks a major recalibration of crypto oversight and opens the door for broader integration of digital assets into the traditional banking system.
Key Highlights:
✨ OCC Clarifies Crypto Services for Banks
National banks and federal savings associations can now buy and sell crypto assets on behalf of customers, as well as provide custody and related services. They may also outsource crypto custody and trading to trusted third parties with strong risk controls.
🚫 No More Pre-Approval Required
The OCC, FDIC, and Federal Reserve have removed previous requirements for banks to seek formal approval or notify regulators before engaging in crypto activities. These services will be overseen through standard supervisory processes.
💼 Permissible Crypto Activities Include:
🔹 Buying and selling digital assets for customers
🔹 Custody and safekeeping of cryptocurrencies
🔹 Facilitating crypto-to-fiat and fiat-to-crypto exchanges
🔹 Settlement, trade execution, recordkeeping, valuation, tax services, and reporting
🔹 Using sub-custodians and outsourcing to third-party providers with proper safeguards
🛡️ Risk Management Remains Crucial
Banks must maintain robust risk management, cybersecurity, and comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. Operational resilience and customer protection are top priorities.
Why This Matters
🌐 Mainstream Integration
Digital assets can now be seamlessly integrated into traditional financial services, making crypto more accessible through trusted, regulated banks.
🚀 Encourages Innovation
Lower regulatory barriers empower banks to develop new crypto-related products and services, fostering competition and innovation.
🔒 Boosts Customer Confidence
Clients gain safer access to crypto markets via federally insured institutions, reducing reliance on unregulated platforms.
US banks are officially cleared to buy, sell, and custody cryptocurrencies for their clients, ushering in a new era of digital asset adoption within the American financial system. The focus now turns to how banks will implement these services while upholding high standards of security and compliance.