settlement, trade execution, recordkeeping, valuation and tax services.17 The OCC’s most recent clarification also confirmed that banks may also “buy and sell” assets that are held in custody at the direction of a customer. Although regulatory clarity is developing, there remains much to be clarified. In a Joint Letter to the president’s Digital Assets Working Group submitted by numerous industry groups on May 1, 2025, the trade organizations jointly recommended three remaining priority initiatives as critical to the ability of banks to maintain their role as essential components in the financial services sector and economy: (1) a coordinated and common approach across all federal bank regulators regarding the ability of banks to engage in distributed ledger technology and related digital asset activities; (2) codification of a technology-neutral approach to determinations regarding what types of activities are legally permissible for banks to engage in; and (3) publication of uniform guidance specific to risk-management expectations for digital asset activities engaged in by banks, including areas such as anti-money laundering and capital and liquidity standards relative to blockchain exposure.18 Realizing that community banks may be facing unique challenges to incorporate digital assets into strategies and operations, on May 12, 2025, the OCC published a Request for Information (RFI) Regarding Community Bank Digitalization.19 The OCC recognizes digital technology solutions as tools that could allow community banks to better serve their customers and meet customer demand, while increasing revenue, improving efficiencies and remaining competitive. The goal of the recent RFI is to “help the OCC better understand the specific obstacles that community banks encounter in their efforts to modernize operations, enhance customer experience and remain competitive in an increasingly digital financial services environment.” The RFI follows the OCC’s launch of its digitalization page earlier this year, which compiles resources specific to community banks on topics such as safety and soundness, risk management and guidance related to emerging technologies.20 Now continues to be the time for banks of all sizes to educate themselves on the digital transformations occurring throughout the industry, which may require gaining subject matter expertise so that boards of directors and senior management can understand the potential impacts that pending legislation may have on future operations, competition for deposits, risks and technology strategies. Reviewing and understanding the areas that the OCC recently sought information on as relevant to future policy is just one way to do so. Spencer Fane attorney Kirstin D. Kanski maintains a comprehensive banking and financial services practice in which she provides strategic legal advice to financial institutions on a variety of bank regulatory, compliance, governance and enforcement matters. She can be contacted at kkanski@spencerfane.com and (612) 268-7002. Endnotes 1 CNBC interview, Brian Moynihan, January 21, 2025. 2 See kinexys by J.P.Morgan Payments. 3 Investor Day | JPMorganChase, May 19, 2025, at 3:05:00. 4 Digital Assets | BNY. 5 The GENIUS Act will now move to the U.S. House of Representatives, where it will be considered alongside its companion Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (STABLE Act of 2025) and the Digital Asset Market Clarity Act of 2025 (CLARITY Act of 2025). 6 Fiserv Launches New FIUSD Stablecoin for Financial Institutions: Fiserv, Inc. (FI), June 23, 2025; Fiserv to offer Own Stablecoin, Partners with PayPal, Circle; June 23, 2025, Emily Mason, BloombergLaw, Crypto News. 7 Mastercard partners with Fiserv to accelerate mainstream stablecoin adoption, June 24, 2025. 8 William J. Pulte, Director, U.S. Federal Housing FHFA, @pulte on X, June 25, 2025. 9 FDIC Releases Documents Related to Supervision of Crypto-Related Activities, Statement of Acting Chairman Travis Hill, Feb. 5, 2025. 10 OCC IL 1183 (Mar. 7, 2025) (rescinding OCC Interpretive Letter 1179 (Nov. 18, 2021); FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities | FDIC.gov (Mar. 28, 2025); Federal Reserve Board - Press Release (April 24, 2025). 11 Remarks at the U.S. Chamber of Commerce Capital Markets Summit: June 2, 2025. 12 Rodney Hood, Acting Comptroller of the Currency, LinkedIn; May 8, 2025. 13 Rodney Hood, Acting Comptroller of the Currency, LinkedIn; May 7, 2025. 14 See OCC IL 1170 (Jul. 22, 2020), OCC IL 1172 (Sept. 21, 2020), OCC IL 1174 (Jan. 4, 2021). The Federal Reserve Board and the FDIC issued similar early guidance on the legal authority of banks to engage in the crypto industry. FRB (Aug. 16, 2022) (SR 22-6; CA 22-6); FDIC FIL (Apr. 7, 2022) (FIL-16-2022). 15 OCC IL 1184 (May 7, 2025), citing 12 U.S.C. § 24(Seventh) of the National Bank Act and 12 U.S.C. § 92a (trust powers of national banks). 16 OCC IL 1184 (May 7, 2025), n. 2 (quoting M & M Leasing Corp. v. Seattle First Nat’l Bank, 563 F.2d 1377, 1382 (9th Cir. 1977)). 17 OCC IL 1170 (Jul. 22, 2020), n. 39. 18 Open Letter to David Sacks, Special Advisor for Artificial Intelligence and Crypto Chair, President’s Working Group on Digital Asset Markets, May 1, 2025, at 2, jointly submitted by the Bank Policy Institute, American Bankers Association, American Fintech Council, Americas Focus Committee of the Association of Global Custodians, Financial Services Forum, Securities Industry and Financial Markets Association and The Clearing House Association. 19 OCC News Release 2025-41, May 5, 2025; Request for Information Regarding Community Bank Digitalization; 90 FR 20212, Request for Information Regarding Community Bank Digitalization, 2025-08280. More than 80% of the institutions supervised by the OCC are community banks. Community Banks | OCC. 20 Digitalization: Resources for Community Banks | OCC. 12 | The Show-Me Banker Magazine
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