OCC Approves Riskless Principal Crypto Transactions for Banks
The OCC issued an interpretive letter on Tuesday affirming that national banks may act as riskless principals in cryptocurrency trades. This allows banks to intermediate crypto trades—buying from one customer and offsetting with another—without the need to hold the underlying assets on their own balance sheets.
According to the OCC:
“Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market.”
This framework mirrors the riskless principal model in traditional finance, giving banks a regulated pathway to expand crypto services safely.
Bringing Regulated Crypto Services to Bank Customers
The interpretive letter emphasizes that this guidance enables customers to transact crypto-assets through federally regulated banks rather than through unregulated or less-regulated alternatives. By leveraging the experience of traditional banking institutions in managing operational and credit risks, the OCC believes these services can be offered securely.
The main risk in riskless principal transactions, according to the OCC, is counterparty credit risk, particularly settlement risk. The guidance notes that managing these risks is already a core competency of national banks.
Also Read : Australia Unleashes Landmark Crypto Regulation Bill in 2025: New Rules Set to Reshape Digital Finance
Legal Basis for Riskless Principal Crypto Trading
The OCC cites 12 U.S.C. § 24, which allows national banks to conduct riskless principal transactions as part of the “business of banking.” The letter also clarifies that crypto assets classified as securities are already permissible under existing law for riskless principal transactions, aligning digital asset activity with established banking practices.
Banks engaging in such trades must confirm the legal permissibility of all crypto activity, ensure compliance with their chartered powers, and maintain robust procedures for monitoring operational, market, and compliance risks.
OCC Leadership Supports Equal Treatment for Digital Assets
The interpretive letter follows remarks from OCC Acting Comptroller Jonathan Gould, who stated that crypto firms seeking federal bank charters should receive the same treatment as traditional financial institutions. Gould emphasized that the US banking system has the “capacity to evolve” and that digital assets should not be treated differently from other bank-held electronic assets.
From Regulatory Scrutiny to Pro-Crypto Policy
Previously, some industry groups criticized US regulators under the Biden administration for imposing stricter oversight on crypto, dubbing it “Operation Choke Point 2.0.” However, since President Trump took office in January, the federal government has adopted a more permissive stance, signaling a shift toward supporting digital asset activities within regulated banking frameworks.
With the OCC’s guidance, US national banks now have a clear pathway to offer regulated, riskless principal crypto trading, opening the door to safer, more robust crypto services for American consumers.
