US Regulator Greenlights "Riskless" Crypto Trades for National Banks

The guidance confirms that banks can act as intermediaries, which means they can complete trades for one client while immediately arranging the reverse with another, all without holding any crypto themselves.

The banks must still verify they have the proper legal authority under their charters and must have strong controls in place to manage risks.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)

SUBSCRIBE

ON YOUTUBE

According to the document, one key challenge is managing the credit risk of the other party in a trade, especially during settlement. Banks are expected to use their existing experience and tools in managing such risks as part of their regulated operations.

The guidance cites federal law, specifically 12 USC § 24, which already allows national banks to handle transactions as riskless principals as part of standard banking activities.

The interpretive letter is nonbinding and clarifies rather than creates new authority under existing statutes. The document noted:

Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market.

This guidance was issued after OCC head Jonathan Gould shared his views on how the agency should approach companies. What did he say? Read the full story.