Key Highlights
- OCC confirms banks may engage in riskless principal crypto-asset transactions.
- The ruling follows recent comments supporting equal treatment for crypto firms seeking bank charters.
- The move builds on November guidance, allowing banks to hold crypto for network fees.
The Office of the Comptroller of the Currency (OCC) confirmed today that national banks are permitted to conduct riskless principal transactions in crypto-assets. The ruling clarifies how regulated institutions may participate in digital markets at a time when banks, fintechs, and crypto firms are seeking clearer guidelines for blockchain-based services.
The latest Letter 1188 by the office says that banks may intermediate crypto trades by matching customer buy-and-sell orders without holding inventory, as long as they operate safely and comply with the law.
OCC’s earlier signals
The clarification follows recent public comments from Comptroller Jonathan Gould, who told industry leaders on December 8 that crypto firms applying for national trust charters should be treated no differently than traditional financial institutions. Gould said the OCC received 14 bank applications this year, including from major crypto and fintech firms such as Coinbase, Circle, and Ripple.
Gould argued that digital asset custody and related services are not novel concepts for regulated banking, saying such functions have been handled electronically “for decades.”
Authority structured in new interpretive letter
The Letter 1188 provides detailed confirmation that national banks may enter into riskless principal crypto-asset transactions. According to the OCC, these transactions pose minimal settlement and credit risk because banks execute both sides of the trade simultaneously.
The letter emphasizes that the role is “the legal and economic equivalent of a broker acting as agent,” reinforcing that banks are not permitted to engage in speculative trading or inventory holding under this framework.
November guidance laid the groundwork
The announcement builds on the OCC’s November 19 guidance, which confirmed that banks may hold limited amounts of crypto-assets on balance sheets to cover operational needs, such as paying network fees on blockchain transactions. The earlier Letter 1186 also let banks use blockchain for activities already permitted under existing rules.
Together, the interpretive letters signal the OCC’s growing effort to codify how regulated financial institutions can participate in the digital-asset economy without taking speculative exposure.
Market will watch closely
The OCC ruling marks a step forward for banks exploring crypto settlement and custody, but institutions must still meet supervisory standards and show they can manage the operational and compliance risks involved.
For now, the agency’s latest ruling helps define what is permissible under existing law, but banks and digital-asset firms will be watching closely for further guidance as the OCC continues updating its crypto framework heading into 2026.
Also read: Brazil Confirms IOF Tax on Crypto After Months of Debate
