OCC confirms banks can execute riskless principal crypto transactions

The Office of the Comptroller of the Currency (OCC) issued guidance confirming that national banks are permitted to execute riskless principal crypto trades. Under Interpretive Letter No. 1188, this allows banks to function as intermediaries, matching and executing offsetting trades between customers in the crypto market. Crucially, this activity does not require banks to hold any digital assets on their balance sheets, thereby avoiding inventory risk.

This clarification is part of the OCC's ongoing efforts to define the role of banks in digital assets. The regulator has previously issued guidance supporting national banks' authority to engage in various crypto activities, provided they adhere to safe and sound practices. Furthermore, the OCC has stated that banks can engage in crypto custody and related services without needing prior supervisory non-objection, signaling support for responsible innovation in the digital asset sector.

(Source：Crypto Briefing)