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The US Office of the Comptroller of the Currency (OCC) has officially endorsed national banks’ ability to facilitate cryptocurrency transactions as riskless principals, enabling them to intermediate crypto trades without holding the assets on their balance sheets. This regulatory move inches traditional banks closer to offering fully regulated crypto brokerage services.
In a recently released interpretive letter, the OCC clarified that banks can act as principals in a crypto trade with one customer while simultaneously offsetting the trade with another customer—a practice that parallels riskless principal activities in conventional financial markets. The guidance emphasizes that such crypto trades fall squarely within the “business of banking,” expanding the scope of activities national banks may legally engage in under current statutes.
The OCC noted that this framework offers significant benefits by allowing customers to execute crypto transactions within regulated banking institutions, providing a safer alternative to non-regulated or less regulated venues. However, banks must ensure these activities are legally permisible and consistent with their chartered powers. They are also expected to have robust procedures in place to manage operational, compliance, and market risks, particularly focusing on counterparty credit risk, which is central to riskless principal transactions.
Citing 12 U.S.C. § 24, the letter draws clear legal backing for these activities and distinguishes crypto assets qualifying as securities, where existing law already permits such transactions. This interpretive letter—though nonbinding—signals a shift toward integrating crypto services into the traditional banking system framework.
This announcement followed remarks by OCC head Jonathan Gould advocating for equal treatment of crypto firms seeking federal bank charters, noting the banking sector’s capacity to evolve and the longstanding electronic custody services banks have provided. The guidance reflects a broader trend toward regulatory acceptance and integration of digital assets within the US financial landscape.
For more details, visit: https://cointelegraph.com/news/us-bank-regulator-national-banks-facilitate-crypto-transactions
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US Regulator Greenlights National Banks to Facilitate Cryptocurrency Trades, Paving Way for Regulated Crypto Brokerage Services