US Banks Can Now Buy and Sell Customers’ Crypto Assets: | Crypto Work Pro
The US Office of the Comptroller of the Currency (OCC), which regulates national banks, has clarified that establishments underneath its oversight can now buy and sell crypto belongings on behalf of their clients. This replace was confirmed in an interpretive letter printed yesterday (Wednesday).
In addition, the OCC said that national banks could outsource crypto-asset providers to 3rd events, together with custody and commerce execution, offered these third events preserve sound risk management practices.
Banks Can Now Handle Customers’ Crypto Holdings
The newest OCC letter follows a comparable directive issued in March, which rescinded the 2021 coverage requiring banks to hunt prior supervisory approval earlier than participating in crypto-related providers.
“The services national banks may provide in relation to the cryptocurrency they are custodying may include services such as facilitating the customer’s cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, recordkeeping, valuation, tax services, reporting, or other appropriate services,” the March letter said.
It additional clarified: “A bank acting as custodian may engage a sub-custodian for cryptocurrency it holds on behalf of customers and should develop processes to ensure that the sub-custodian’s operations have proper internal controls to protect the customer’s cryptocurrency.”
The US Crypto Landscape Is Shifting
Meanwhile, the Federal Reserve not too long ago dropped its supervisory tips that beforehand required American banks to inform it prematurely of any crypto-asset actions. Banks are additionally no longer required to acquire formal approval from the Fed earlier than participating in stablecoin-related operations.
The choices by each US regulators replicate the broader shift towards more crypto-friendly insurance policies underneath the Trump administration.
President Donald Trump appointed Paul Atkins because the new Chair of the Securities and Exchange Commission (SEC), the company identified for its enforcement actions towards crypto corporations. Following the departure of former Chair Gary Gensler, the SEC has withdrawn a number of high-profile crypto lawsuits and investigations.
At the federal degree, Trump has additionally shaped a working group to review crypto laws and ordered the creation of a national Bitcoin reserve.
This article was written by Arnab Shome at www.financemagnates.com.
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