Real-world asset tokenization is the crypto killer app — Polygon exec

The US Office of the Comptroller of the Currency (OCC) has confirmed banks under its jurisdiction can trade crypto on behalf of customers and outsource some crypto activities to third parties. Acting comptroller Rodney Hood said in a May 7 letter that banks and federal savings associations can buy and sell crypto they hold in custody at customers’ direction.The OCC added in a press release that financial institutions can also outsource bank-permissible crypto activities, including custody and execution services, to third parties in compliance with applicable law.“Additionally, these banks may provide other custody services, including record keeping, tax or reporting services for their customers,” Hood said in a May 7 video posted to X. OCC-regulated banks may buy and sell assets held in custody and are permitted to outsource bank-permissible crypto-asset activities, including custody and execution services. https://t.co/0ScQdgNaS6 pic.twitter.com/J5dEkx4WUL— OCC (@USOCC) May 7, 2025“OCC banks may use a sub-custodian to provide the same services subject to appropriate third-party risk management practices, while a range of cryptocurrency and digital asset activities may be performed by banks and their third parties,” he added. Previously, the OCC eased its stance on how banks can engage with crypto on March 7 by giving the green light for crypto-asset custody, some stablecoin activities, and participation in independent node verification networks such as distributed ledgers. “More than 50 million Americans hold some form of cryptocurrency. This digitalization of financial services is not a trend; it is a transformation,” Hood said. The OCC is an independent bureau within the US Department of the Treasury that regulates and supervises all national banks and also the federal branches of foreign banks.Industry supports the OCC letters Katherine Kirkpatrick Bos, general counsel at ZK-rollup developer StarkWare, said the letters signal a “shift in the OCC’s approach,” which now appears to favor a focus on integrating crypto within banking frameworks. “More guidance will give further clarity [and] will allow banks to re-enter crypto [without] the fear of existential regulatory risk,” she said. She added the OCC’s “explicit permission today allowing banks to outsource bank-permissible crypto-assets is a boon to regulated crypto native service providers.” Source: Katherine Kirkpatrick BosChief policy officer at crypto exchange Coinbase, Faryar Shirzad, also applauded the move, saying in a May 7 post to X, Hood’s commitment to “regulatory clarity, as well as his adherence to supervisory best practices and the letter of the law,” is appreciated. The Trump administration has taken a friendlier attitude toward crypto since coming into power in January. Related: The lessons learned at Operation Chokepoint 2.0 Congressional hearingsIn April, the US Federal Reserve announced it was withdrawing guidance that was created to deter banks from engaging in crypto and stablecoin activities.US President Donald Trump also signed a joint congressional resolution on April 11, overturning a Biden administration-era rule that would have required decentralized finance protocols to report transactions to the Internal Revenue Service.Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Arizona Governor Katie Hobbs has signed a bill into law allowing the US state to keep unclaimed crypto and establish a “Bitcoin Reserve Fund” that won’t use any taxpayer money or state funds.Hobbs signed House Bill 2749 into law on May 7, which allows Arizona to claim ownership of abandoned digital assets if the owner fails to respond to communications within three years.The state’s custodians can stake the crypto to earn rewards or receive airdrops, which can then be deposited into what Arizona has called a Bitcoin and Digital Asset Reserve Fund.“This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency,” the bill’s sponsor, Jeff Weninger, said in a May 7 statement.Arizona House Representative Jeff Weninger’s statement on the signing of HB 2749 into law. Source: Jeff Weninger“We’ve built a structure that protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy,” Weninger added.On May 3, Hobbs vetoed a similar Bitcoin (BTC) reserve bill, Senate Bill 1025, which would have allowed the state to invest seized funds into Bitcoin, citing concerns over using public funds for “untested assets.”Hobbs’ move gives hope for future crypto billsBitcoin Laws founder Julian Fahrer said on X that Hobbs’ signing of HB 2749 offers more hope that she may also sign Senate Bill 1373, which is currently on her desk.Related: Bitcoin bros at ‘the club’ may stop US gov’t from buying BTC — Arthur HayesSB 1373 would authorize Arizona’s treasurer, currently Kimberly Yee, to allocate up to 10% of Arizona’s Budget Stabilization Fund into Bitcoin. The bill’s passage in Arizona follows New Hampshire Governor Kelly Ayotte on May 6 signing House Bill 302 into law, allowing her state’s treasury to use funds to invest in cryptocurrencies with a market capitalization of more than $500 billion.Bitcoin is currently the only cryptocurrency that meets that threshold.Magazine: Crypto wanted to overthrow banks, and now it’s becoming them in stablecoin fight

Binance founder and convicted felon Changpeng Zhao says that he applied for a pardon from US President Donald Trump shortly after denying reports that he was seeking one.Zhao, also known as CZ, said on a Farokh Radio podcast episode aired May 6 that he “wouldn’t mind” a pardon and that his lawyers have already filed the paperwork on his behalf“I got lawyers applying,” Zhao said, adding that he submitted the request after Bloomberg and The Wall Street Journal reported in March that he was seeking a pardon from Trump amid discussions of a business deal between the Trump family and Binance.US.Zhao denied the reports at the time, but said on the podcast that he thought “if they’re writing this article, I may as well just officially apply.”He added that Trump’s pardon of three BitMEX founders, including Arthur Hayes, also motivated him to submit an application.Zhao said the application was submitted about two weeks ago.Changpeng Zhao (right) speaking with Farokh Sarmad (left). Source: Farokh RadioZhao said at the time of the Bloomberg and Wall Street Journal reports that “no felon would mind a pardon,” and claimed he is the only person in US history to serve prison time for a Bank Secrecy Act charge.Zhao pleaded guilty to a money laundering charge in November 2023 as part of a deal Binance reached with US authorities, which saw it pay a $4.3 billion fine, to which Zhao contributed $50 million. He was also forced to step down as CEO.Zhao was later sentenced to four months in prison and was prohibited from working at Binance as part of his plea deal.Related: VanEck files for BNB ETF, first in USAccording to the US Department of Justice, a pardon would not erase Zhao’s money laundering conviction; however, it could potentially allow him to assume a management or operational role at Binance.US.Zhao has no plans to return as Binance CEOWhile Zhao remains a Binance shareholder, he said in November at Binance Blockchain Week that he has “no plans to return to the CEO position.” “I feel the team is doing well and doesn’t need me back,” Zhao said.Since leaving prison, Zhao has commenced advisory roles in Pakistan and Kyrgyzstan, assisting on matters related to crypto regulation and implementing blockchain solutions.Magazine: Bitcoiner Adam Back on Blockstream conspiracy theories and Satoshi question