OCC OKs federal bank cryptocurrency custody services

The Office of the Comptroller of the Currency has published an Interpretive Letter to clarify national banks' and federal savings associations' authority to provide cryptocurrency custody services for customers. The OCC concludes that providing cryptocurrency custody services, including holding unique cryptographic keys associated with cryptocurrency, is a modern form of traditional bank activities related to custody services, and that crypto custody services may extend beyond passively holding "keys."

In a press release, the OCC said that the letter "applies to national banks and federal savings associations of all sizes and is consistent with a number of states which have already authorized state banks or trust companies to provide similar functions."