United States banks have been given the go-ahead to act as intermediaries in cryptocurrency transactions, according to a national banking regulator. The Office of the Comptroller of the Currency (OCC) issued new guidance on Tuesday, signalling a further move to integrate traditional finance with the crypto sector. This decision permits banks to engage in ‘riskless principal’ transactions involving crypto assets without facing regulatory scrutiny.
Under this framework, banks will function as brokers, simultaneously buying crypto assets from one party and selling them to another. The OCC clarified that banks will not hold crypto assets in their own inventory during these transactions, except in unusual situations. This arrangement aims to facilitate cryptocurrency trading while minimising risk exposure for the banks involved.
This decision marks a continuation of the Trump administration’s approach to digital assets, which has involved revising existing rules and reducing oversight. While proponents argue this fosters innovation, critics express concerns about the potential for increased systemic risks due to the growing interconnectedness of traditional finance and the volatile cryptocurrency market. Previous restrictions on banks’ crypto activities established under President Joe Biden have also been withdrawn.
In March, the OCC approved certain crypto activities for banks and eliminated prior guidance that required firms to seek advance regulatory approval before entering the crypto sector. These changes reflect a broader effort to provide regulatory clarity and encourage responsible innovation in the evolving digital asset landscape. The OCC supervises national banks and federal savings associations, ensuring the safety and soundness of the national banking system and protecting consumers’ financial interests.
