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U.S. Banks Get Green Light to Offer Riskless Crypto Brokerage Services
The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidance allowing national banks to participate in cryptocurrency transactions as intermediaries without assuming market risk. This development marks a significant step toward integrating regulated crypto brokerage services into mainstream banking.
Banks Can Act as Crypto Intermediaries
According to the interpretive letter released Tuesday, banks can execute a cryptocurrency trade on behalf of one client while simultaneously entering a corresponding transaction with another client. This mirrors the riskless principal model long used in traditional markets.
By enabling banks to facilitate client trades without holding digital assets on their own balance sheets, the OCC anticipates that customers will gain safer and broader access to digital assets through regulated institutions, offering an alternative to less-regulated crypto platforms.
Conditions and Risk Controls
The OCC emphasizes that any crypto activity must comply with legal requirements and be consistent with a bank’s chartered authority. Institutions are required to maintain systems to monitor compliance, operational risk, and market exposure, with particular attention to counterparty credit risk during settlement.
The agency notes that banks already routinely manage these risks and possess established processes to handle them effectively.
Legal Foundation for Guidance
The guidance cites 12 U.S.C. § 24, which authorizes national banks to conduct riskless principal transactions. This framework clarifies the distinction between digital assets classified as securities and those that are not, reaffirming that riskless trades involving securities are already lawful.
Importantly, the OCC describes the letter as non-binding guidance, aimed at clarifying existing law rather than imposing new regulatory obligations.
Federal Approach to Digital Assets Shifts
OCC Director Jonathan Gould stressed that banks can adapt to emerging technologies, highlighting decades of experience in electronic custody services. The guidance signals a broader federal shift toward a more permissive stance on digital assets, contrasting with prior heightened scrutiny of banks serving crypto clients under previous administrations.
