The US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184, providing further clarity on the scope of permissible activities national banks and federal savings associations may engage in with regard to crypto-asset custody and execution services.

The letter confirms that banks may buy and sell assets held in custody at the direction of their customers and may engage third parties to perform bank-permissible crypto-asset activities, including custody and execution services, subject to sound third-party risk management practices.

These activities align with the authorities previously outlined in OCC Interpretive Letters 1170 and 1183.

As with any banking function, crypto-asset custody operations, including those involving sub-custodians, must be carried out in a safe and sound manner and in full compliance with applicable legal and regulatory requirements.

This clarification reinforces the OCC’s commitment to supporting responsible innovation within the federal banking system while ensuring the continued safety and soundness of its institutions.

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