OCC affirms that riskless principal crypto trades fall within the ‘business of banking’ under existing federal law
The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidance confirming that national banks may facilitate cryptocurrency transactions as riskless principals, marking a significant shift that brings traditional financial institutions closer to offering regulated crypto brokerage services.
In its interpretive letter released Tuesday, the OCC said banks can execute a crypto trade with one customer and enter an offsetting trade with another without holding the digital assets on their balance sheets a model that mirrors long-established riskless principal activity in equities and other traditional markets.
The agency noted that multiple applicants have described how riskless principal crypto-asset transactions would expand services for customers and support demand in a growing market.
The guidance underscores that customers will now be able to transact crypto through fully regulated banks rather than less-regulated alternatives.
The OCC emphasized that national banks must still verify the legal basis for any crypto-related activity and maintain strong oversight of operational, compliance, and market risks.
Counterparty credit risk, particularly settlement risk, remains the primary consideration, the letter states, adding that banks already have long-standing expertise managing such exposure.
The regulator referenced 12 U.S.C. § 24, which authorizes national banks to conduct riskless principal transactions as part of their core banking functions. It also clarified distinctions between crypto assets that qualify as securities, noting that riskless principal activity involving securities already falls clearly within existing authority.
The guidance comes just one day after Comptroller Jonathan Gould stated that crypto firms seeking federal bank charters should be treated on equal footing with traditional institutions. Gould argued that the banking system “has the capacity to evolve,” and that digital assets should not be viewed differently from electronic custody services banks have offered for decades.
Shift From Restrictive Oversight to Pro-Crypto Policy
The announcement marks a notable turn from the approach under the previous administration, when industry groups accused regulators of engaging in “Operation Choke Point 2.0“ a campaign of heightened scrutiny toward banks servicing crypto businesses.
Since President Donald Trump took office in January, the federal government has adopted a more permissive and industry-friendly stance, signaling that digital assets may soon integrate more fully into the regulated U.S. banking system.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.