US Regulator Allows Banks To Intermediate Crypto Trades As Riskless Principals

The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidance authorizing national banks to conduct cryptocurrency trades as riskless principals—a structure where the bank executes a trade with one customer and immediately offsets it with another trade, avoiding direct asset exposure.

The letter clarifies that this activity falls within the “business of banking” under 12 U.S.C. § 24, aligning crypto markets with long-established brokerage practices.

The OCC said several applicants highlighted how riskless principal trading would allow customers to transact through regulated banks rather than relying on lightly regulated crypto platforms.

While the model eliminates balance-sheet exposure, banks are still required to manage counterparty and settlement risks and ensure full compliance with chartered powers, operational controls and risk-monitoring frameworks.

The letter also distinguishes between crypto assets that qualify as securities, noting that riskless principal transactions involving securities were already permitted under existing law. The clarification could accelerate traditional banks’ entry into offering regulated crypto brokerage services.

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