Federal Regulator Approves Riskless Crypto Trading for US Banks
The Office of the Comptroller of the Currency confirmed that nationwide banks could interact in riskless principal crypto-asset transactions, eliminating a key barrier between conventional banking and digital property.
The determination permits banks to behave as intermediaries in crypto trades by concurrently shopping for from one buyer and promoting to a different with out holding stock.
The coverage shift marks the OCC’s most aggressive step but towards integrating crypto into mainstream banking, constructing on earlier approvals for custody services and balance sheet holdings.
Banks can now facilitate shopper crypto trades whereas assuming solely minimal settlement and credit score threat.
Banking’s Crypto Gateway Opens Under New Framework
In Interpretive Letter 1188, senior deputy comptroller Adam Cohen stated the exercise falls squarely inside the enterprise of banking as a result of it mirrors current brokerage features.
National banks have lengthy acted as monetary intermediaries in securities, derivatives, and different asset lessons by means of riskless principal transactions, taking momentary possession to bridge purchaser and vendor.
The OCC utilized the identical logic to crypto-assets, noting that banks remove market threat by means of offsetting trades whereas retaining restricted publicity to counterparty defaults.
Cohen emphasised that the authority extends past securities to any crypto-asset, together with these not categorized beneath federal securities regulation, as a result of the transactions align with banks’ conventional middleman function.
Meanwhile, the regulator dismissed considerations about operational complexity, arguing that banks already handle related dangers when settling securities by way of digital ledgers.
Cohen stated distributed ledger expertise merely represents a contemporary technique of recording transactions, no completely different in precept from book-entry settlement programs that banks have used for a long time.
Why This Changes Bank Crypto Operations
The determination removes a structural impediment that pressured banks to both keep away from crypto buying and selling totally or depend on third-party intermediaries for shopper transactions.
By permitting direct riskless principal exercise, the OCC permits banks to supply seamless crypto providers whereas sustaining regulatory compliance and buyer protections.
Banks can now serve purchasers who need crypto publicity with out partnering with unregulated exchanges or pseudonymous counterparties.
U.S. banks formally cleared to carry crypto following the @USOCC coverage reversal, a significant win for digital property and conventional finance. #OCC #Bankshttps://t.co/PYpmuOPZmK
— Cryptonews.com (@cryptonews) November 19, 2025
The framework requires banks to implement know-your-customer protocols, transaction monitoring, and the flexibility to freeze or reverse transfers when obligatory, options constructed into sure blockchain platforms, reminiscent of Stellar.
The coverage additionally strengthens banks’ aggressive place towards fintech rivals and crypto-native corporations searching for federal financial institution charters.
Several main establishments have already moved towards crypto integration, with Bank of America authorizing advisers to suggest Bitcoin ETFs and JPMorgan permitting clients to fund Coinbase accounts by way of Chase playing cards.
Regulatory Momentum Builds Across Digital Assets
The OCC’s transfer comes as federal companies speed up the event of stablecoin and tokenized deposit frameworks beneath the GENIUS Act.
The FDIC will publish its first stablecoin rule proposal later this month, establishing capital, liquidity, and reserve necessities for bank-issued dollar-backed tokens.
Federal Reserve Vice Chair Michelle Bowman stated the central financial institution is coordinating with peer companies on requirements to anchor digital property to conventional finance.
The Treasury Department closed its second public session on non-bank stablecoin issuers in current weeks, creating parallel oversight tracks that can govern the whole US stablecoin market.
Acting FDIC chair Travis Hill revealed that steerage on tokenized deposits can be underway, clarifying how blockchain-based representations of financial institution deposits will likely be handled beneath current laws.
The effort responds to rising trade curiosity in utilizing distributed ledgers for funds and settlement.
OCC head Jonathan Gould stated that crypto corporations searching for federal financial institution charters must be evaluated on par with conventional monetary corporations.#OCC #USBankCharter #DigitalAssetFirmshttps://t.co/hXWT3OU9GX
— Cryptonews.com (@cryptonews) December 9, 2025
Jonathan Gould, who turned the OCC’s first everlasting comptroller since 2020 after affirmation in July, has pushed back against banking industry complaints about approving crypto agency charters.
Speaking on the Blockchain Association Policy Summit final week, he stated digital asset custody and safekeeping have operated electronically for a long time, including there is no such thing as a justification for treating crypto otherwise.
The OCC acquired roughly 14 financial institution constitution functions this yr, together with from Coinbase, Circle, and Ripple, all searching for federal oversight for stablecoin and custody operations.
Gould dismissed considerations about supervisory capability, noting the company already supervises a crypto-native nationwide belief financial institution and fields every day inquiries from conventional banks launching revolutionary merchandise.
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