The OCC confirms that national banks may intermediate cryptocurrency trades without holding digital assets on their balance sheets.
The U.S. Office of the Comptroller of the Currency (OCC) has determined that national banks may act as intermediaries in cryptocurrency buy-and-sell transactions as a “riskless principal,” meaning without holding digital assets on their balance sheets.
In an interpretive letter released on December 9, the supervisory authority clarified that banks may act as the principal counterparty in a crypto transaction with a customer while simultaneously executing an offsetting transaction with another party. Because the bank does not maintain inventory or assume prolonged market exposure, the activity is classified as low risk and consistent with brokerage practices already permitted in traditional finance.
The document highlights that several institutions have outlined the benefits of intermediating Bitcoin and crypto transactions for their clients, including the ability to offer additional services in a rapidly expanding sector.
Benefits for investors
According to the OCC, this opening would allow users to transact in digital assets through regulated banks, rather than relying on unregulated platforms or those subject to lower supervisory standards. The letter also underscores that institutions must verify the legality of any crypto-related activity and ensure it falls within the powers granted by their banking charter.
Banks are required to implement procedures to monitor operational, compliance, and market risks. “The main risk in riskless principal transactions is counterparty credit risk (in particular, settlement risk),” reads the letter, adding that “managing counterparty credit risk is integral to the business of banking, and banks are experienced in managing this risk.”
Regulatory framework
The OCC’s guidance references Title 12 of the United States Code, Section 24, which authorizes national banks to conduct riskless principal transactions as part of “the business of banking.” The letter also draws a distinction for crypto assets that qualify as securities, noting that riskless principal transactions involving securities were already clearly permitted under existing regulations.
The interpretive letter was issued the day after remarks by OCC head Jonathan Gould. According to Gould, crypto companies seeking a federal banking charter should be evaluated under the same standards applied to traditional financial institutions.
In Gould’s view, the banking system has the “capacity to evolve,” and there is “no justification for considering digital assets differently” than traditional banks, which have offered custody services “electronically for decades.”
