The Office of the Comptroller of the Currency (OCC) has confirmed that banks can act as intermediaries in “riskless principal” crypto transactions, in guidance which narrows the gap between the traditional financial sector and crypto activities. In an interpretive letter, the OCC said banks may act as principals in a crypto trade with one customer while simultaneously entering an offsetting trade with another, a structure that mirrors riskless principal activity in traditional markets. The move would allow customers “to transact crypto-assets through a regulated bank, as compared to non-regulated or less regulated options,” the OCC said.
