New Era for Crypto Banking in the US: Europe Left Behind?

Yesterday, the Office of the Comptroller of the Currency (OCC) issued a pivotal clarification permitting all US banks to provide crypto custody services, conduct certain operations with stablecoins, and participate in maintaining nodes. Notably, this authorization automatically applies to all banks nationwide.

Given this regulatory clarity, traditional banks are expected to actively enter the crypto market. However, lacking their own crypto infrastructure, banks will likely form strategic partnerships with existing crypto companies. This development creates exciting opportunities for both decentralized (DeFi) and centralized crypto service providers.

How is Europe's approach different?

Interestingly, on the same day as the OCC announcement, Spain's BBVA bank received approval for BTC and ETH trading services—but only after an extensive application process. Unlike the US, European banks must navigate lengthy authorization and licensing procedures, often spanning several years.

And the rest of the world?

In most countries, banks are still required to secure specific licenses to offer crypto services. Yet, there are exceptions:

• Singapore and Hong Kong: Banks and payment institutions may offer crypto services, provided they comply with regulatory requirements.
• Switzerland and Georgia: Banks automatically have the right to provide crypto services, similar to the new approach in the US.