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US banks can handle customer crypto assets held in custody, regulator confirms

The US Office of the Comptroller of the Currency (OCC) has confirmed banks under its jurisdiction can trade crypto on behalf of customers and outsource some crypto activities to third parties. 

Acting comptroller Rodney Hood said in a May 7 letter that banks and federal savings associations can buy and sell crypto they hold in custody at customers’ direction.

The OCC added in a press release that financial institutions can also outsource bank-permissible crypto activities, including custody and execution services, to third parties in compliance with applicable law.

“Additionally, these banks may provide other custody services, including record keeping, tax or reporting services for their customers,” Hood said in a May 7 video posted to X. 

“OCC banks may use a sub-custodian to provide the same services subject to appropriate third-party risk management practices, while a range of cryptocurrency and digital asset activities may be performed by banks and their third parties,” he added. 

Previously, the OCC eased its stance on how banks can engage with crypto on March 7 by giving the green light for crypto-asset custody, some stablecoin activities, and participation in independent node verification networks such as distributed ledgers. 

“More than 50 million Americans hold some form of cryptocurrency. This digitalization of financial services is not a trend; it is a transformation,” Hood said. 

The OCC is an independent bureau within the US Department of the Treasury that regulates and supervises all national banks and also the federal branches of foreign banks.

Industry supports the OCC letters 

Katherine Kirkpatrick Bos, general counsel at ZK-rollup developer StarkWare, said the letters signal a “shift in the OCC’s approach,” which now appears to favor a focus on integrating crypto within banking frameworks. 

“More guidance will give further clarity [and] will allow banks to re-enter crypto [without] the fear of existential regulatory risk,” she said. 

She added the OCC’s “explicit permission today allowing banks to outsource bank-permissible crypto-assets is a boon to regulated crypto native service providers.” 

US banks can handle customer crypto assets held in custody, regulator confirms
Source: Katherine Kirkpatrick Bos

Chief policy officer at crypto exchange Coinbase, Faryar Shirzad, also applauded the move, saying in a May 7 post to X, Hood’s commitment to “regulatory clarity, as well as his adherence to supervisory best practices and the letter of the law,” is appreciated. 

The Trump administration has taken a friendlier attitude toward crypto since coming into power in January. 

Related: The lessons learned at Operation Chokepoint 2.0 Congressional hearings

In April, the US Federal Reserve announced it was withdrawing guidance that was created to deter banks from engaging in crypto and stablecoin activities.

US President Donald Trump also signed a joint congressional resolution on April 11, overturning a Biden administration-era rule that would have required decentralized finance protocols to report transactions to the Internal Revenue Service.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

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BitGo secures VARA license amid regulatory crackdown

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BitGo secures VARA license amid regulatory crackdown

BitGo secures VARA license amid regulatory crackdown

Dubai’s regulator announced it had issued financial penalties against 19 companies related to digital asset activities amid approval for BitGo’s MENA entity.

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Tetchy Badenoch criticised me for asking hard questions – but leadership challenge talk won’t go away

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Tetchy Badenoch criticised me for asking hard questions - but leadership challenge talk won't go away

In the 11 months since Kemi Badenoch has become party leader, the Conservative Party has dropped from 26% to 17% in the polls.

It has lost nearly 700 council seats, 16 councils, while 18 senior Tories have defected, including one of the party’s great thinkers, Danny Kruger.

Politics Live: Tory councillors defect to Reform

Her personal poll rating, minus 47, is worse than the lowest ebb of Iain Duncan Smith’s fated leadership and worse than when Boris Johnson resigned.

To rub salt into the wounds, a Sky News/YouGov poll this week found that the majority of Tory members think Robert Jenrick should be the leader, while half don’t think she should lead them into the next general election.

Being leader of the Opposition is often described as the hardest job in politics, but for Badenoch, with Reform stealing the march as the party of the right, it looks pretty much impossible.

For someone who needs to try to win people over, Badenoch has a curious style. She likes to be known as a leader who isn’t afraid of a fight and, at times, she approached our interview at the Conservative Party conference as if she was positively looking for one.

More on Kemi Badenoch

A few times in our interview when I asked her a question she didn’t like, or didn’t want to answer (it is my job to ask all politicians hard questions), she seemed tetchy.

And when I deigned to ask her whether she admired Nigel Farage, she criticised me for asking the question. She asked why I was not asking her if I admire Sir Keir Starmer or Sir Ed Davey.

Her approach surprised me, as I had asked the prime minister exactly the same question a week before. He’d answered it directly, without arguing over why I had asked it: “I think he is a formidable politician,” said Sir Keir.

Badenoch told me she didn’t understand the question, and then told me she wasn’t interested in talking about him. It made for an awkward, ill-tempered exchange.

The facts remain that Farage is topping the polls, helped by Labour’s collapsing support and the Conservatives’ deep unpopularity.

And in the run-up to our interview, Reform drip-fed the news that 20 Tory councillors were defecting to Farage’s party.

There is open talk in Badenoch’s party about whether the Tories will need to try to come to some sort of agreement with Reform at the next election to try to see off Labour and ‘progressive parties’.

Farage says absolutely not, as does Badenoch – but many in her party do not think she has that luxury.

Andrew Rosindell, MP for Romford, told GB News he’ll lose his seat unless the two sides “work together” and said the right must unite to defeat the left. Arch-rival Robert Jenrick pointedly refuses to rule it out, saying only it’s “not the priority”. Meanwhile, party members support an electoral pact by two to one, according to our Sky News poll.

On the matter of whether these MPs, and party members, have a point, Badenoch bristled: “It is important that people know what we stand for. Robert Jenrick is not the leader of the Conservative Party, neither is Andrew Rossindell. I am the leader of the party and we are not having a coalition or a pact with Reform.”

Read More:
Jaunty Jenrick: a leader’s speech in all but name
Kemi Badenoch praises Thatcher but faces fight with grandees

When I ask colleagues if they think Badenoch is too aloof, too argumentative, too abrasive to lead this rebuild, the popular refrain for her supporters is that she is “a work in progress” and that it would be madness to change the leader again.

The question is, will she be given the time to develop? The plot to oust her is active and much of the chatter around this conference is whether she might be challenged before or after the May local elections.

There are some colleagues who believe it is better to give her more time to turn things around and, if May is truly dreadful and the party goes further backwards, remove her then.

Ahead of conference, when asked by Tim Shipman of the Spectator whether she would resign if the Conservatives go backwards in May, she said rather cryptically “ask me after the locals”.

When I asked Badenoch why she said that she replied, “let’s see what the election result is about”.

When I explained that it sounded rather like she might throw in the towel after next May and so was seeking clarification, she told me that I was asking irrelevant questions.

“Your viewers want to know how their lives are going to be better. Not be inside the Westminster bubble politics of who’s up, who’s down… It’s part of the reason why the country is in this mess. Perhaps if people had scrutinised Labour’s policies instead of looking at just poll ratings, they would be running the country better.”

But Tories are looking at poll ratings and there is a view from some in the party that if the Tories wait until another drubbing in the May local, Scottish and Welsh elections, there might not be much of a party apparatus left to rebuild from.

More than half of Tory members want pact with Reform
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More than half of Tory members want pact with Reform

In short, there is not a settled view on when a challenge might come, but with the party in the position it is in, talk of a challenge will not go away.

Badenoch wants to make the case that her “authentic conservatism” is worth sticking with and that the policies the Conservatives are announcing will give them a pathway back.

On borders, the Tories are trying to neutralise Reform with a very similar offer. On the economy and welfare cuts, they hope they can beat Labour and Reform.

But really, the question about this party and this leader is about relevance. The prime minister didn’t even bother to name check Badenoch in his conference speech, while Davey trained his guns on Farage rather than his traditional Tory rival.

Badenoch may not like being asked about Reform, might – in her words – not be interested in Reform, but her former voters, and the country, are. The enormous challenge for her in the coming months is to see if she can get them to look at her.

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How XRP’s legal victory turned it into Wall Street’s favorite crypto

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How XRP’s legal victory turned it into Wall Street’s favorite crypto

How XRP’s legal victory turned it into Wall Street’s favorite crypto

XRP’s legal victory reshaped investor confidence, establishing it as a preferred choice for investors seeking regulated, liquid crypto assets.

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