The Office of the Comptroller of the Currency has issued new guidance permitting traditional banks to execute riskless principal transactions involving crypto assets. The December 9 letter marks a significant shift in regulatory stance toward digital asset integration within the conventional banking sector.

The directive enables financial institutions to act as intermediaries in cryptocurrency trades without holding the assets on their balance sheets. Banks can now facilitate matched transactions between customers and counterparties, eliminating direct exposure to crypto volatility while expanding service offerings.

Regulatory Reversal Signals Industry Maturation

The OCC's latest position represents a departure from its cautious approach between 2021 and 2024. During that period, the agency implemented strict oversight measures and collaborated with the Federal Reserve to highlight cryptocurrency risks, including liquidity concerns and price volatility.

The new framework allows banks that previously operated crypto pilots to pursue comprehensive digital asset programs. Currently, few institutions hold OCC charters specifically for crypto operations. Anchorage Digital remains one of the rare examples of a chartered crypto bank. The updated guidance could accelerate the emergence of hybrid banking models combining traditional and digital asset services.

The OCC letter emphasizes customer benefits as a primary justification for the policy change. Regulated banks can now offer crypto transaction services that provide greater oversight and consumer protection compared to unregulated platforms. Customers gain access to digital asset markets through institutions subject to federal supervision and compliance requirements.

By positioning banks as intermediaries, the framework addresses counterparty risk concerns. Customers can avoid direct engagement with pseudonymous traders or unregulated exchanges. Banks provide operational infrastructure and risk management capabilities that individual investors may lack.

The OCC stipulates that all riskless principal crypto transactions must adhere to safety and soundness standards. Banks remain subject to applicable laws and regulatory oversight. The agency will incorporate digital asset activities into its standard supervisory examinations.