US Regulator Clears Banks to Act as Crypto Intermediaries in Riskless Transactions
The US Office of the Comptroller of the Currency (OCC) allows banks to engage in "riskless principal" crypto transactions, enabling them to act as intermediaries without substantial asset exposure. This regulatory change reduces friction and narrows the gap between traditional finance and crypto trading.
- Banks can buy and sell crypto simultaneously without holding large amounts on their balance sheets.
- This activity is not considered novel or unsafe by regulators.
Recent policies have shifted towards easing procedural barriers for banks:
- In March, the OCC removed requirements for prior approval for certain crypto activities.
- The FDIC also announced that banks don't need prior approval for specific crypto-related activities if they manage risks properly.
- The Federal Reserve ended its Novel Activities Supervision Program, integrating crypto oversight into standard processes.
These steps are part of a broader policy pivot, with Congress advancing market-structure and stablecoin legislation like the GENIUS Act. Large institutions such as PNC and SoFi Bank are expanding their crypto services.
The Trump administration supports this integration of traditional finance and crypto, aiming to prevent discrimination against crypto businesses and keep innovation within US regulatory oversight. However, there are concerns about potential risks to the financial system if controls do not keep pace with market developments.