Here’s what’s happening at the intersection of banking and Bitcoin:
🏦 OCC Clarifies Bank Authority to Engage in Bitcoin Custody and Execution Services
On May 7, 2025, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184, reaffirming that national banks and federal savings associations may provide Bitcoin custody and execution services, including through sub-custodians. The OCC confirmed that these activities are permissible under existing banking authority so long as banks comply with applicable law and engage in safe and sound practices.
💳 JPMorgan Chase Offers Bitcoin Access: Despite CEO Jamie Dimon's personal skepticism, JPMorgan Chase now allows clients to buy Bitcoin, displaying holdings on statements without providing custody services. This move aligns with competitors like Morgan Stanley, reflecting growing institutional interest in Bitcoin.
🇬🇧 Nigel Farage Proposes Bitcoin Legislation: At the Bitcoin 2025 conference in Las Vegas, Reform UK leader Nigel Farage unveiled plans for a "Cryptocurrency and Digital Finance Bill." The proposed legislation includes a 10% capital gains tax on Bitcoin and the establishment of a national Bitcoin reserve within the Bank of England.
🌍 Pakistan Establishes Bitcoin Reserve: Pakistan announced the creation of a national Bitcoin reserve, inspired by similar initiatives in the U.S. The government plans to hold Bitcoin in a national wallet and has allocated 2,000 megawatts of electricity to support Bitcoin mining and AI data centers.
🤝 Standard Chartered Partners with FalconX: Standard Chartered Bank entered into a partnership with digital asset broker FalconX to enhance settlement and foreign exchange capabilities for institutional Bitcoin clients. This collaboration aims to streamline Bitcoin transactions for large-scale investors.
🔍 Wrap-up
Regulatory bodies are coming out in numbers to provide a more favorable environment for financial institutions seeking to engage in bitcoin and crypto related activities. Innovative companies are wasting no time taking advantage of capitalizing on this newfound regulatory clarity!
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