A top US bank regulator says lenders can facilitate crypto transactions on behalf of their customers without having to hold the assets on their balance sheets.
The Office of the Comptroller of the Currency (OCC) has issued an interpretive letter confirming that national banks may act as intermediaries in “riskless principal” crypto trades.
The transactions involve buying a crypto asset from one party and immediately selling it to another, with no long-term inventory or significant risk.
This permission applies to crypto assets not classified as securities, like Bitcoin (BTC).
Banks must conduct activities safely, manage risks such as settlement defaults, and comply with all laws.
The OCC views these trades as a part of core banking practices, similar to brokerage services for financial instruments.
The move builds on prior approvals for crypto custody, allowing banks to offer regulated alternatives to unregulated exchanges.
And it’s a departure from the Biden era, when the SEC required entities to record custodial crypto assets on their balance sheets, limiting banks’ ability to offer crypto custody services without significant capital implications – a requirement that was rescinded back in January.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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