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US banks may not be ready for crypto custody just yet

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Last month, the United States Office of the Comptroller of the Currency (OCC) mapped out an advanced notice of proposed rulemaking (ANPR), asking for responses following its recent notice that banks can offer crypto custody services. 

The responses in the ANPR shows that US bank is willing to engage in cryptocurrency. However, they are likely not ready to offer such service yet; regulatory guidance is still needed.

OCC said US banks can offer crypto custody services

The OCC’s notice came in July, clarifying that the US banks, as well as federal savings associations, can provide cryptocurrency custody services for their customers. The development was welcomed by many crypto enthusiasts and companies, on the note that it will open up more doors for mainstream adoption of cryptocurrencies and other related products, especially in the US.

The responses submitted for the OCC’s notice are more of positivity. US banks are probably no longer arguing over the issue of providing crypto services, as they mostly sought more guidance to offer crypto custody, while still avoiding any hurdle associated with it. About 92 responses were submitted in the OCC’s ANPR from the crypto/blockchain companies and banking institutions.

Banks want more regulatory guidance

The response from the American Bankers Association is among the letters that suggest that US banks are not ready to begin providing crypto custody services just yet. They see the need for more guidance for managing crypto assets services effectively. Precisely, the letter from the American Bankers Association reads:

“Effective policy analysis on crypto-assets is essential to maintaining banks’ capacity to innovate, but it may be inhibited by the lack of common terminology. A common taxonomy and understanding of crypto assets’ risks and features, broadly consistent and coordinated across all the relevant regulators, is essential to fostering prudent innovation within a sound risk management framework.”

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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