US Regulator Explicitly Permits Banks to Intermediate Crypto Trades
Banks can now formally serve as intermediaries for cryptocurrency transactions, according to an announcement from a top US banking regulator. The guidance issued Tuesday is part of a broader effort to integrate the traditional financial sector with digital asset markets.
The Office of the Comptroller of the Currency detailed that banks may conduct “riskless principal” transactions for crypto assets without inviting regulatory objection. This involves banks facilitating trades by matching buyers and sellers simultaneously, without holding the assets on their own books.
The regulator noted that holding crypto inventory is not part of the permitted process, with only rare exceptions. The administration’s welcoming approach to crypto, alongside involvement by the first family in crypto ventures, has spurred numerous regulatory changes.
These actions have drawn criticism for intertwining the stable banking system with the high-risk crypto ecosystem, potentially sowing systemic risk. The OCC had already begun this shift in March, approving certain activities and removing mandates for banks to seek advance regulatory approval.
