Davis Polk Discusses OCC Letter Confirming that National Banks May Provide Cryptocurrency Custody

The Office of the Comptroller of the Currency (the OCC) issued an interpretive letter (the Letter) confirming that national banks and federal savings associations (together, banks) may provide cryptocurrency custody services.[1] This Letter is the latest in a series of actions taken or announced by Acting Comptroller Brian Brooks to clarify how traditional banking regulations apply to modern fintech activities.

Banks have provided safekeeping and custody services for a broad range of customer assets for centuries.[2] The Letter clarifies that cryptocurrency safekeeping and custody activities are a modern version of these traditional banking activities that … Read more