U.S. bank regulator OKs national banks to intermediate cryptocurrency transactions

The Workplace of the Comptroller of the Coin has licensed nationwide banks to dealer crypto transactions by risk-free principal transactions, in line with new tips from the company.

The OCC printed Interpretive Letter 1188 on December 9, formally permitting nationwide banks to have interaction in transactions through which they briefly buy digital belongings from one buyer and instantly promote them to a different buyer in absolutely offsetting transactions.

Underneath the risk-free grasp mannequin, banks don’t maintain inventories or keep long-term market publicity, the company stated within the letter. The OCC categorised such actions as low threat and similar to established brokerage practices already permitted within the conventional monetary business.

The rules emphasize that these transactions perform equally to long-term securities brokerage, the letter stated. The OCC has maintained that monetary actions ought to be regulated primarily based on threat moderately than know-how, persevering with the company’s technology-neutral regulatory method.

Banks engaged in cryptocurrency intermediation should keep robust threat administration controls, clear buyer protections, sturdy compliance programs and safe working frameworks, in line with the OCC. The company said that establishments will likely be monitored by customary supervisory processes to make sure that digital asset actions meet safety expectations utilized throughout the banking sector.

Why it issues

The brand new steerage follows a sequence of coverage modifications by U.S. monetary regulators in 2025. The OCC, Federal Reserve and Federal Deposit Insurance coverage Company have withdrawn earlier restrictive declarations that prevented banks from partaking in digital asset companies, regulator filings present.

The coverage modifications replicate efforts to modernize banking laws and reply to institutional demand for appropriate cryptocurrency infrastructure, regulatory observers famous. The rules enable banks to dealer cryptocurrency transactions with out taking up steadiness sheet threat, doubtlessly increasing integration between conventional finance and digital belongings.