OCC Comptroller Warns Crypto Custody Restrictions Could Stifle Banking Innovation

• Comptroller Gould warns that blocking crypto custody for national trust banks risks irrelevance and stifles financial evolution.

• National trust banks have managed nonfiduciary custody since the 1970s, including digital assets similar to electronic shares.

• In Q3 2025, these banks reported nearly $2 trillion in custodial assets, comprising 25% of their total assets under administration.

Discover how Comptroller Jonathan Gould defends national trust banks’ role in crypto custody amid opposition. Learn why this could reshape banking innovation—explore key insights today.

What is the OCC’s Position on National Trust Banks and Crypto Custody?

National trust banks crypto custody represents a natural extension of established federal banking practices, as affirmed by Comptroller of the Currency Jonathan Gould. He emphasized that prohibiting such activities would undermine the system’s dynamism and disrupt over a trillion dollars in traditional operations. Gould’s remarks highlight the OCC’s commitment to evolving regulations that support modern finance without compromising safety.

How Are Banking Groups Opposing Crypto Charters for National Trust Banks?

Industry groups like the Independent Community Bankers of America and the Bank Policy Institute have filed opposition letters against crypto charter applications, arguing they exploit regulatory gaps in federal law. For instance, they challenged applications from firms such as Coinbase and Sony Bank’s Connectia Trust, claiming these reinterpret laws impermissibly. Comptroller Gould countered these concerns by pointing to historical precedents dating back to the 1970s, when national trust banks began nonfiduciary custody services.

Supporting data from the third quarter of 2025 shows national trust banks administering nearly $2 trillion in nonfiduciary custodial assets, which accounts for 25% of their total assets. This underscores the scale of existing activities that could be disrupted. Gould noted that state trust companies in New York and South Dakota already offer digital asset custody, treating them akin to electronic rights in company shares held for decades.

“There is simply no justification for considering digital assets differently,” Gould stated during his address at the Blockchain Association’s policy summit in Washington. He described opposition efforts as “myopic” and legally unjustifiable, arguing they contribute to a less competitive banking industry. Expert analysis from OCC supervisory practices further demonstrates that the agency has overseen trust banks for decades, including crypto-native entities like Anchorage Digital, whose anti-money laundering consent order was lifted in August 2025 after proving operational soundness.

Frequently Asked Questions

What Precedents Support National Trust Banks in Crypto Custody?

National trust banks have provided nonfiduciary custody services since the 1970s, initially for traditional assets and now extending to digital ones. Comptroller Gould highlighted that this aligns with federal law precedents, managing trillions in assets without disruption. In 2025, these activities represent a significant portion of banking operations, ensuring continuity in a evolving financial landscape.

Why Is De Novo Chartering Important for Crypto Activities in Banking?

De novo chartering allows the federal banking system to adapt to innovations like blockchain and digital assets, keeping pace with economic changes. In 2025, the OCC received 14 such applications, a sharp increase from prior years, many involving crypto custody or trust conversions. This process reinvigorates competition and supports a dynamic industry, as noted by Comptroller Gould in his policy summit remarks.

Key Takeaways

• Evolving Custody Practices: National trust banks’ involvement in crypto custody builds on 50 years of nonfiduciary services, safeguarding over $2 trillion in assets.
• Opposition Risks Stagnation: Efforts to block these activities ignore precedents and could hinder banking innovation, per Comptroller Gould’s warnings.
• Regulatory Support for Growth: Increased de novo applications in 2025 signal a revitalized chartering process, promoting diversity in federal banking.

Conclusion

Comptroller Jonathan Gould’s defense of national trust banks crypto custody underscores the federal system’s resilience against outdated restrictions. By drawing on historical precedents and current data, the OCC aims to foster innovation while maintaining stability. As digital assets integrate further, banks that embrace these opportunities will lead a more competitive landscape—stakeholders should monitor ongoing charter developments for strategic advantages.