The Office of the Comptroller of the Currency (OCC) released a letter on December 9 that clarifies the role national banks may play in crypto trading.
The guidance confirms that banks can act as intermediaries, which means they can complete trades for one client while immediately arranging the reverse with another, all without holding any crypto themselves.
The banks must still verify they have the proper legal authority under their charters and must have strong controls in place to manage risks.
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According to the document, one key challenge is managing the credit risk of the other party in a trade, especially during settlement. Banks are expected to use their existing experience and tools in managing such risks as part of their regulated operations.
The guidance cites federal law, specifically 12 USC § 24, which already allows national banks to handle transactions as riskless principals as part of standard banking activities.
The interpretive letter is nonbinding and clarifies rather than creates new authority under existing statutes. The document noted:
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 guidance was issued after OCC head Jonathan Gould shared his views on how the agency should approach companies. What did he say? Read the full story.
