US banking authority clears path for crypto services at national banks

US Banking Authority Clears Path for Crypto Services at National Banks

US banking authority clears path for crypto services at national banks

In a significant regulatory shift, the U.S. banking system has opened the door for national banks to offer cryptocurrency services, including custody and tokenized deposit products. This move, led by the Office of the Comptroller of the Currency (OCC), marks a departure from previous restrictions and aligns with a broader trend of integrating digital assets into traditional financial institutions.

Regulatory Developments

The OCC recently issued an interpretative letter clarifying that national banks under its supervision are permitted to hold cryptocurrencies for their customers. This builds upon a broader statement from March 2025 that reversed earlier guidance requiring OCC approval before banks could engage with digital assets. The new stance allows banks to offer crypto custody services without prior regulatory approval, provided they manage associated risks appropriately.   

Similarly, the Federal Deposit Insurance Corporation (FDIC) announced that banks can now engage in legally permitted cryptocurrency activities without needing prior approval, as long as they manage the associated risks. This policy reversal changes the previous requirement for banks to obtain advance permission for any crypto-related activities.  

The Federal Reserve also joined in this regulatory shift by withdrawing supervisory letters that required banks to seek regulatory approval before participating in crypto-asset and stablecoin ventures. Additionally, the Fed, FDIC, and OCC rescinded a 2023 joint statement warning of volatility, legal uncertainty, and liquidity risks associated with cryptocurrencies. This collective move reflects a willingness to reassess regulatory frameworks in support of innovation in the crypto space.  

Implications for the Banking Sector

The regulatory changes have significant implications for the banking industry. Banks can now offer a range of crypto-related services, including custody, trading, and tokenized deposit products. This integration of digital assets into traditional banking services is expected to enhance customer offerings and competitiveness. 

Financial institutions like Bank of America and Charles Schwab have expressed interest in expanding their crypto services. Bank of America CEO Brian Moynihan indicated that banks would “come in hard on the transactional side” of crypto if regulations allow it. Charles Schwab’s CEO Rick Wurster also expressed optimism about future regulations enabling more comprehensive crypto services.   

The shift also opens opportunities for banks to explore tokenized deposits, which could serve as a stablecoin alternative backed by the banks themselves. This development could revolutionize payment systems and cross-border transactions, offering faster and more secure options for consumers and businesses.

Market Response

The market has responded positively to the regulatory changes. Bitcoin’s price rose by over 1.5% to approximately $105,800 following the SEC’s announcement reversing guidance that had hindered banks from holding digital assets. This move by the SEC marks a significant policy shift towards a more crypto-friendly stance.  

The regulatory clarity is expected to attract more institutional investors into the crypto space, further legitimizing digital assets and potentially leading to increased adoption and innovation.

The recent regulatory developments signify a pivotal moment in the integration of cryptocurrencies into the U.S. banking system. By allowing national banks to offer crypto services, regulators have paved the way for broader adoption and innovation in the financial sector. As banks begin to implement these services, customers can expect more diverse and secure options for managing digital assets.

This evolution reflects the growing recognition of cryptocurrencies’ role in the modern financial landscape and the importance of regulatory frameworks that support innovation while ensuring stability and security.