OCC Greenlights Banks for Crypto Riskless Principal Trades
The Office of the Comptroller of the Currency (OCC) has authorized national banks to execute riskless principal transactions in crypto-assets, marking a pivotal step toward institutional participation in digital markets. The guidance, outlined in Letter 1188, permits banks to match buy/sell orders without holding inventory—provided they meet stringent operational and compliance standards.
Comptroller Jonathan Gould’s December 8 announcement aligns with this move, signaling equal treatment for crypto firms seeking national trust charters. Notably, 14 applications from industry heavyweights like Coinbase, Circle, and Ripple are under review—a clear nod to crypto’s encroachment on traditional finance.
The OCC plans iterative updates to its crypto framework through 2026, reflecting regulators’ cautious embrace of blockchain innovation. For banks, the ruling opens doors to custody services and order-matching—but with compliance as the gatekeeper.
