OCC Clarifies Banks' Role in Crypto Transactions: A New Era for Digital Assets

The Office of the Comptroller of the Currency (OCC) has issued a clarification that national banks may engage in crypto-related "riskless principal" transactions. This means that banks can act as intermediaries between two customers, buying crypto from one and selling it to another without holding the assets in inventory.

In its Interpretive Letter 1188, the OCC explained that such transactions allow a bank to act as a principal, effectively serving as a broker acting on behalf of clients. This guidance follows a broader regulatory trend to ease restrictions on crypto activities within the traditional banking sector.

In March, the OCC removed prior requirements for banks to seek advance approval before engaging in certain crypto operations, signaling growing acceptance of digital assets in mainstream finance. This new guidance enables U.S. banks to offer crypto services in a manner similar to traditional brokerage activities.

Several major banks have already announced their plans to offer crypto services. For example, Bank of America announced that it would allow wealth management clients to allocate 1%–4% of their portfolios to digital assets. PNC Bank also became the first major U.S. bank to offer eligible Private Bank clients direct bitcoin trading through its own platform, powered by Coinbase's infrastructure.