WASHINGTON— National banks and federal savings associations may act as intermediaries in certain cryptocurrency transactions under a new decision from the Office of the Comptroller of the Currency, a move that clarifies how traditional financial institutions can participate in digital asset markets.
In a letter released Tuesday, the OCC said banks may facilitate crypto transactions for customers — including settling, clearing and validating transfers — provided they maintain “appropriate risk-management and compliance controls.” The decision effectively affirms that crypto-related intermediation can fall within a bank’s existing authority to provide payment, custody and agency services.
Acting Comptroller Michael Hsu said the guidance aims to provide clarity as crypto usage evolves.
“Our goal is to ensure banks can innovate safely,” Hsu said in a statement. “This decision does not endorse any particular digital asset but makes clear that federally supervised institutions may engage in these activities in a safe, sound and compliant manner.”
Knowledge Must be Demonstrated
The OCC noted that banks entering the crypto-intermediation space must demonstrate they understand operational, cybersecurity, liquidity and consumer-protection risks. Institutions will be required to notify their OCC supervisory office and receive written confirmation before launching such services.
The ruling comes as federal agencies continue to grapple with how to regulate digital assets following several high-profile market disruptions and ongoing legislative debates. Banking trade groups have long sought clearer parameters, arguing that regulated institutions can help reduce fraud and improve consumer protections in crypto markets.
Consumer Advocates Concerned
Consumer advocates, however, cautioned the decision could expose banks and their customers to heightened volatility. Some urged regulators to move carefully, noting the lack of comprehensive federal crypto legislation.
The OCC said the decision does not authorize banks to issue their own cryptocurrencies or engage in activities that would require separate regulatory approval.
The guidance takes effect immediately.
