OCC Approves Banks As Intermediaries In Crypto Transactions

"The Office of the Comptroller of the Currency ( OCC) has clarified that national banks may engage in "riskless principal" transactions involving crypto-assets. In its new Interpretive Letter 1188, the OCC explained that such transactions allow a bank to act as a principal between two customers, buying crypto from one while simultaneously selling it to another. The bank does not hold the assets in inventory, effectively serving as a broker acting on behalf of clients."

"This guidance follows a broader regulatory trend to ease restrictions on crypto activities within the traditional banking sector. In March, the OCC removed prior requirements for banks to seek advance approval before engaging in certain crypto operations, signaling growing acceptance of digital assets in mainstream finance. In other words, U.S. banks can now offer crypto services in a manner similar to traditional brokerage activities. Last week, Bank of America announced it would allow wealth management clients to allocate 1%-4% of their portfolios to digital assets."

Interpretive Letter 1188 permits national banks to engage in riskless principal transactions in crypto-assets, where a bank buys from one counterparty and immediately sells to another without maintaining inventory. The guidance allows banks to act as principals in simultaneous buy-sell arrangements, with only rare inventory holdings for settlement timing. The OCC previously relaxed approval requirements in March, reflecting regulatory easing around bank crypto activities. Major banks are responding: Bank of America authorized 1%-4% crypto allocations for wealth clients across Merrill and related platforms, and PNC launched direct bitcoin trading for eligible Private Bank clients using Coinbase infrastructure.

Read at Bitcoin Magazine