OCC Clears Banks to Act as Crypto Intermediaries

Banks in the United States will now be allowed to act as intermediaries for crypto transactions, according to new guidance issued Tuesday by the Office of the Comptroller of the Currency (OCC). The move marks the latest step by the Trump administration to narrow the gap between traditional finance and the crypto sector.

OCC Approves “Riskless Principal” Crypto Deals

The OCC said banks can participate in “riskless principal” transactions involving crypto assets. In these deals, a bank buys an asset from one party and immediately sells it to another, acting like a broker. The bank does not hold crypto in its inventory except in rare cases.

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Trump Administration Continues Crypto-Friendly Shift

The Trump administration has taken a more welcoming approach to crypto, easing rules and removing previous limits. Critics argue that this approach increases connections between regulated banks and the volatile crypto market, which could pose systemic risks.

Biden-Era Restrictions Rolled Back

U.S. regulators have already rolled back several crypto-related restrictions originally put in place under President Joe Biden. In March, the OCC approved certain crypto activities for banks and ended earlier requirements for banks to seek advance regulatory approval before engaging in the sector.