OCC Concludes That National Banks May Provide Cryptocurrency Custody Services

• Published date: 13 November 2020
• Law Firm: Jones Day
• Author: Ms Lisa Ledbetter, Stephen J. Obie, Mark W. Rasmussen and William M. Atherton

On July 22, 2020, the Office of the Comptroller of the Currency ("OCC") concluded in Interpretive Letter #1170 that national banks may provide cryptocurrency custody services to customers in both a fiduciary and non-fiduciary role. The OCC Interpretive Letter explains that providing custody services for cryptocurrency falls within the longstanding, traditional authorities of a national bank to engage in safekeeping and custody activities, including through electronic means.

Prior to the OCC Interpretive Letter, as banks entered the internet-era, the OCC permitted them to hold electronic assets, including encryption keys...