New US Guidance Allows Banks to Act as Crypto Brokers

The Office of the Comptroller of the Currency, a national US bank regulator, announced Tuesday that banks can serve as intermediaries for cryptocurrency transactions. This guidance represents a continued push to narrow the gap between the established financial sector and digital asset activities.

The regulator stated banks may engage in “riskless principal” transactions for crypto assets without fear of reprisal. This process allows a bank to facilitate a trade by simultaneously entering into a purchase and a sale, without taking ownership of the assets for any meaningful period.

Except in extraordinary circumstances, the bank does not hold cryptocurrencies like Bitcoin or Ethereum in inventory through this activity. The administration’s supportive posture toward crypto, which includes rolling back regulations, has prompted a series of such permissive rulings.

Critics contend these policies have dangerously interconnected the traditional financial system with the speculative crypto market, creating potential for widespread risk. US bank regulators have withdrawn several restrictions established under the previous administration, with the OCC taking earlier action in March to approve some crypto activities and scrap pre-approval mandates.