On March 7, 2025, the U.S. Office of the Comptroller of the Currency (OCC) dropped a bombshell: national banks can now custody cryptocurrency assets without prior approval, as long as they manage risks effectively. The ruling, detailed by Reuters, is a seismic shift for an industry long hamstrung by regulatory uncertainty. Days later, Spain’s BBVA secured permission to offer Bitcoin and Ethereum trading in Spain, while the SEC’s acting chief signaled a retreat from plans to regulate some crypto firms as alternative trading systems. Together, these moves mark a turning point—one that aligns with President Trump’s vision of America as the “Crypto Capital of the World.”
“This is about unleashing innovation,” David Sacks, Trump’s crypto czar, said at last week’s White House summit. The OCC’s decision removes a major barrier for banks wary of stepping into the crypto fray, potentially paving the way for Wall Street giants to offer custody services to institutional clients. “It’s a green light for mainstream adoption,” said Matt Hougan, chief investment officer at Bitwise, who predicts a wave of bank-backed crypto products by year’s end. Spain’s BBVA move echoes this trend, with the bank eyeing a rollout across Europe if demand holds.
Across the Atlantic, the mood is less rosy. Eurozone officials, quoted by Reuters, voiced alarm at the U.S. pivot. “If America hoards Bitcoin, it could destabilize global finance,” one ECB advisor warned anonymously. The concern: a crypto-supercharged U.S. might undermine monetary sovereignty, especially if Trump’s strategic Bitcoin reserve—launched with 198,000 BTC—grows as planned. The tension underscores a broader divide: while the U.S. races ahead, others fear a power imbalance.
For crypto markets, the regulatory thaw is a lifeline amid a brutal sell-off. Bitcoin’s down 28% from its $109,241 peak, with $4.4 billion flowing out of U.S. Bitcoin ETFs since February (Bloomberg). “Clear rules could lure institutions back,” Hougan argued, noting that custody clarity might stem the bleeding. Yet, macro uncertainty—fueled by Trump’s tariffs and recession fears—looms large. This week’s U.S. economic data will test whether policy wins can outpace economic headwinds, but for now, the industry’s celebrating a rare victory.
