Key Takeaways
- U.S. banks can now legally offer crypto custody and trade crypto on behalf of customers.
- The OCC says banks can partner with third-party providers to deliver crypto services.
- This officially brings Operation Chokepoint 2.0 to a close.
In a major shift for U.S. banking, the Office of the Comptroller of the Currency (OCC) has given federally regulated banks the green light to offer crypto custody and trading services through third-party partners.
This move is a breakthrough for traditional finance, which had been sidelined mainly from crypto under the previous administration.
Banks can now act as custodians of digital assets and even engage sub-custodians, external crypto providers, to manage these services for customers.
OCC Allows Banks To Offer Crypto Custody
In a letter dated May 7, the OCC outlined that banks can offer a full suite of services around customer crypto holdings, from fiat exchanges and trade execution to reporting, valuation, and even tax support.
However, it emphasized that banks must have strong internal controls in place to oversee their crypto partners and protect customer assets.
This policy shift clarifies regulatory confusion and opens the door to mainstream crypto adoption through the banking system.
As traditional institutions enter the space, they’ll bring legitimacy, compliance standards, and serious capital, all of which could fast-track unified crypto regulation in the U.S.
Chokepoint 2.0 Is Over — For Real This Time
The OCC’s latest guidance also officially ends Operation Chokepoint 2.0, the informal crackdown that many in the crypto industry say targeted crypto by pressuring banks to cut ties with digital asset firms.
Donald Trump’s administration had pledged to shut it down, and this letter makes good on that promise.
Under President Joe Biden, banks were reportedly blocked from engaging with crypto altogether, and the Securities and Exchange Commission’s (SEC’s) controversial SAB 121 rule made it nearly impossible for banks to offer crypto custody services.
That rule is now gone, scrapped within the first week of the Trump administration taking office.
With this new clarity from the OCC, U.S. banks can finally step into crypto without legal fog hanging over them. The result? A likely wave of institutional participation, TradFi-crypto partnerships, and more user-friendly crypto products.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
