<ul><li>On March 7, the Office of the Comptroller of the Currency (OCC) reclarified certain crypto banking permissions, confirming that national banks and federal savings associations can engage in crypto-asset custody, stablecoin activities, and participation in distributed ledger networks.</li><li>The OCC expects banks to have strong risk management controls in place for these activities, reducing the burden on banks and providing consistency in the treatment of crypto-related activities.</li><li>There are two primary forms of cryptocurrency custody: custodial (third-party custody) and self-custody. Custodial solutions offer secure storage and compliance frameworks but come with risks. Self-custody aligns with decentralization and financial sovereignty but has its own risks, such as the irreversible loss of funds.</li><li>The OCC's permission for banks to offer custody solutions and engage in stablecoin-related activities presents an opportunity for banks to serve as trusted stablecoin custodians, enhancing cross-border payments and remittances.</li></ul>

US Says Banks Can Hold Crypto, But Should They?

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