US Bank Regulator Confirms National Banks Can Engage in Crypto Transactions

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A letter from the US Office of the Comptroller of the Currency (OCC) confirms in new nonbinding guidance that national banks in the United States may engage in riskless principal crypto-asset transactions with or on behalf of their customers. This confirmation continues a trend of traditional financial frameworks being applied to crypto services in the United States.

The OCC’s Interpretive Letter 1188 confirms that “conducting riskless principal crypto-asset transactions is part of the business of banking and is permissible for a national bank.” 

Riskless principal trades involve buying digital assets from one customer and simultaneously selling them to another without holding the assets on the bank’s own balance sheets. This structure mirrors long-established brokerage activities in traditional markets.

The OCC explains: 

As a riskless principal transaction in a security that has some novel features (e.g., it is also a crypto-asset) is nonetheless a riskless principal transaction in a security … riskless principal transactions with crypto-assets that are securities are clearly permissible under this same line of reasoning.

National banks must ensure that any crypto activity aligns with their charter powers and institute controls to manage legal compliance, settlement, and counterparty credit risks. 

Proponents have argued that being able to engage in riskless principal crypto-asset transactions expands service offerings, enhances consumer protection, and provides regulated alternatives to unregulated crypto platforms by bringing digital asset trading within the federal banking framework.