Key Notes
- Banks can now execute simultaneous crypto buy-sell transactions with minimal balance sheet exposure under new OCC guidance.
- The policy shift follows earlier moves by FDIC and Federal Reserve to normalize crypto oversight within standard banking supervision.
- Trump administration backs expanded bank participation in digital assets while critics warn of potential systemic risk transmission.
A US national bank regulator has confirmed that banks can act as intermediaries in “riskless principal” crypto transactions, positioning them closer to broker-style roles in the digital asset market.
In these deals, a bank buys crypto from one party and simultaneously sells it to another, holding little or no asset exposure on its own balance sheet except in limited cases.
The Office of the Comptroller of the Currency (OCC) said such activities will not be treated as novel or presumptively unsafe, easing a layer of regulatory friction that had discouraged banks from participating in crypto flows. The move aims to narrow the gap between traditional finance and crypto trading infrastructure while keeping banks within a risk profile regulators view as manageable, according to Reuters.
Part of a New, Broader Policy Pivot
The new stance builds on earlier OCC guidance that allowed national banks to engage in crypto custody, stablecoin activities and participation in distributed ledger networks without seeking prior case-by-case approval. In March, the OCC formally removed expectations that banks must obtain advance permission for certain crypto operations, signaling a shift away from a previous posture following the 2022–2023 market turmoil.
Other banking watchdogs have moved in the same direction. In March, the Federal Deposit Insurance Corporation said FDIC-supervised banks no longer need prior approval to engage in certain crypto-related activities, provided they manage risk in accordance with existing supervisory standards. Together, these steps reduce procedural barriers that had effectively kept many regulated financial companies on the sidelines of the crypto market.
The Federal Reserve has also adjusted its approach, phasing out its dedicated Novel Activities Supervision Program for crypto and other emerging technologies and folding oversight into regular supervisory processes. The central bank said it had gained sufficient understanding of digital-asset risk to supervise such activities using its traditional toolkit, a signal that crypto is being normalized within mainstream bank regulation rather than treated as an anomaly.
At the same time, Congress has advanced broader market-structure and stablecoin legislation, the GENIUS Act, while high-level policy documents emphasize regulatory clarity over punitive enforcement as the primary goal. This policy backdrop has encouraged large institutions such as PNC and SoFi Bank to launch or expand crypto trading and custody offerings, increasing pressure on regulators to align rules with actual market demand.
The Trump Administration’s Support for Cryptocurrency
President Donald Trump has generally backed a more supportive environment for digital assets, with this latest OCC move framed as part of the administration’s effort to bridge traditional finance and crypto. He drafted a White House executive order under consideration that would penalize banks that discriminate against crypto businesses, limiting the ability of large institutions to block fiat flows tied to digital asset activity.
Policy advisers close to the administration have described these steps as necessary for keeping crypto innovation onshore and under US regulatory oversight. Critics warn, however, that tying banks more directly to volatile and sometimes opaque crypto markets could transmit shocks into the core financial system if risk controls do not keep pace.
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Source: https://www.coinspeaker.com/occ-allows-banks-crypto-intermediary-transactions/
