Bank of America receives cryptocurrency boost for OCC confirmation service approval
Now, National Bank is legally allowed to buy and sell cryptocurrencies on behalf of its customers. The ruling was on Wednesday in the form of a letter of interpretation (OCC) revised by the Office of the Auditor General of Currency, eliminating previous regulatory barriers and allowing banks to continue their digital asset services.
Banks allow full crypto services
Under the guidance of the OCC, the Federal Savings Association and the National Bank now offer a variety of crypto services. This will include buying and selling digital assets, converting them into US dollars, conducting settlements, maintaining customer records, and even supporting asset valuations and tax reporting.
These services can be managed by the bank itself or in partnership with third-party providers. But in both cases, the OCC is clear: banks need to have strong internal controls and risk management procedures.
First page of the OCC Interpretive Letter. Source: OCC
The new guide also shows that U.S. regulators have changed a lot more about how they think about cryptocurrencies. On March 7, the OCC canceled a rule that forced banks to get regulatory misrepresentation before getting involved in digital currencies.
Then on April 24, the Fed retreated in its 2022 policy, requiring state member banks to provide prior notice before participating in crypto activities. According to Faryar Shirzad, chief policy officer of Coinbase, this new direction is clearer. He also believes acting Comptroller Rodney Hood helped advance it.
Thanks to the performance @usocc Auditor General Rodney Hood further clarified that the National Bank can provide a variety of crypto services. We thank Comptroller Hood for his commitment to regulatory clarity and his adherence to oversight best practices and… pic.twitter.com/i1mykc4t1i
– Faryar Shirzad🛡️ (@faryarshirzad) May 7, 2025
Banks must act in the direction of customers
The OCC letter also clearly states that banks can act as directed by clients. So if people hold cryptocurrencies with banks and want to sell cryptocurrencies, then banks can execute transactions directly. This increases customer control and paves the way for easier crypto transactions using well-known banking channels.
This explanation is based on previous guidance from the OCC, but now eliminates any uncertainty. Banks do not have to wait for special approval to provide these services, which may accelerate adoption.
As of today, the market cap of cryptocurrencies stood at $3.23 trillion. Chart: TradingView
Rules for risk supervision external providers
The OCC Guide also identifies requirements for how banks deal with third-party crypto service providers. If the bank outsources activities such as cryptocurrency custody or transaction promotion, due diligence and supervision are required.
Image: FIU Business
In particular, sub-clients need to comply with security protocols to protect customer assets. The OCC expects banks to keep such partners in the same standards in other banking sectors. The risk framework needs to be consistent with current regulations to protect customers from possible treatment.
Encryption’s road to the mainstream of banking
The announcement is a strong message that cryptocurrencies are no longer a taboo for mainstream banks. By providing banks with greater latitude participation without prior approval, the OCC shows a more embrace of attitudes towards digital asset services within regulated financing.
Whether this has led to a bank influx in business is uncertain. But the guide is in place, the door is open, and customers can now choose to get encryption from the same bank that has a checking account.
Characteristic images from information, charts for TradingView
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