US OCC Clarifies Banks' Authority to Engage in Crypto Asset Custody and Execution Services

The Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184, confirming that national banks and federal savings associations can buy and sell custodial assets according to customer instructions and are allowed to outsource permissible crypto asset activities (including custody and execution services) to third parties, provided they adhere to appropriate third-party risk management standards. As with any activity, banks must conduct crypto asset custody activities in a safe and sound manner and in compliance with applicable laws, including activities conducted through sub-custodians.