The Office of the Comptroller of the Currency (OCC) has issued new guidance allowing U.S. banks to buy, sell, and manage crypto assets under their custody. This marks a significant policy shift from previous restrictions that limited bank involvement in the digital asset space. The move allows banks to outsource crypto services to third-party providers and potentially opens doors for traditional financial institutions to enter the burgeoning cryptocurrency market. This change follows coordinated action by other regulatory bodies, such as the Federal Reserve and FDIC, who have rescinded earlier letters that required banks to obtain prior approval for any activities related to cryptocurrencies. The OCC’s updated interpretation of 2020’s Interpretive Letter 1170 allows banks to provide cryptocurrency custody services, while 2023’s Interpretive Letter 1183 confirms the permissibility of crypto custody, distributed ledger technology operations, and stablecoin businesses provided banks maintain robust risk management practices. This new regulatory landscape is likely to encourage more traditional banks to participate in the crypto space by partnering with specialized crypto firms for service provision. This shift signals a move towards innovation and modernization within the financial system.