Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The Office of the Comptroller of the Currency (OCC) has clarified that national banks and federal savings associations can provide cryptocurrency custody services for customers. The OCC sees banks providing crypto custody services as âa modern form of traditional bank activities related to custody services.â
Banks Authorized to Offer Crypto Custody Services
The OCC announced Wednesday that it has published âa letter clarifying national banksâ and federal savings associationsâ authority to provide cryptocurrency custody services for customers.â An independent bureau of the U.S. Department of the Treasury, the OCC charters, regulates and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks â altogether there are currently 1,175 entities.
The announcement details: âNational and state banks and thrifts have long provided safekeeping and custody services, including both physical objects and electronic assets. The OCC has specifically recognized the importance of digital assets and the authority for banks to provide safekeeping for such assets since 1998.â The letter reads:
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. Crypto custody services may extend beyond passively holding âkeys.â
Acting Comptroller of the Currency Brian P. Brooks emphasized: âThis opinion clarifies that banks can continue satisfying their customersâ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.â Brooks took office in June. Prior to joining the OCC, he served as the chief legal officer for crypto exchange Coinbase. Believing that âThere is huge and great promise in blockchain and crypto,â Brooks aims to solve banksâ problems with decentralization, as news.Bitcoin.com previously reported.
The letter explains that this clarification âalso reaffirms the OCCâs position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law.â
The crypto community welcomes the OCCâs decision, viewing it as a highly bullish move. âThe OCC letter is a positive development for the entire crypto industry,â Nathan McCauley, CEO of crypto custodian service provider Anchorage, was quoted by Forbes as saying. âA lack of regulatory clarity has been a big roadblock to more institutional activity in crypto, and major pronouncements like this help move the needle.â Nonetheless, he added that âDigital asset custody presents more than regulatory challenges.â Gabor Gurbacs, director of Digital Assets Strategy at Vaneck and MVIS, commented on Twitter:
Thatâs a great step forward toward better institutional support for bitcoin.
What do you think about the OCC green-lighting banks for crypto custody services? Let us know in the comments section below.
The post US Regulator Green-Lights Banks for Cryptocurrency Custody Services appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.