American banks may manage customers' crypto holdings

The U.S. Office of the Comptroller of the Currency (OCC) has confirmed that banks may trade cryptocurrencies on behalf of customers and outsource specific crypto activities to third parties.

The U.S. Office of the Comptroller of the Currency (OCC) has confirmed that banks may trade on behalf of customers in cryptocurrencies and outsource specific crypto activities to third parties. “Additionally, banks may also offer other custody services, such as keeping records, and providing tax or reporting services for their clients,” said acting OCC Supervisor Rodney Hood.

“More than 50 million Americans own some form of cryptocurrency. The digitization of financial services isn’t a trend, but a structural shift,” Hood noted. However, the OCC adds a key condition: “As with any other activity, banks must conduct the custody of crypto holdings through a sub-custodian — in a safe and sound manner, and in compliance with applicable law.”

The OCC is a body within the U.S. Treasury that oversees national banks and U.S. branches of foreign banks. Not only does the OCC show itself crypto-friendly under the Trump administration — the U.S. market regulator SEC has also eased its strict regulatory stance.