## Banks Permitted to Conduct Riskless Cryptocurrency Intermediary Transactions Under OCC's New Guidance

In a significant move for the digital finance sector, the Office of the Comptroller of the Currency (OCC) has just confirmed that national banks can serve as intermediaries in "riskless principal" crypto buy-sell transactions, where a bank purchases an asset from one party and immediately sells it to another, with minimal balance sheet exposure.

This decision is particularly meaningful because it removes a long-standing legal barrier. Banks previously faced uncertainty regarding the legality of such activities. Now, OCC explicitly states that this type of intermediary transaction is not considered an exception or inherently unsafe, paving the way for traditional financial institutions to access the crypto market with regulatory clarity.

### Gradual Normalization of Crypto Activities Within Traditional Oversight Framework

OCC's decision is not isolated. It is part of a broader trend in how US financial regulators approach digital assets.

In March, the FDIC announced that banks under its supervision do not need prior approval to engage in many crypto-related activities, as long as they manage risks according to existing standards. At the same time, the Federal Reserve also adjusted its supervisory structure, ending the New Supervisory Program—a framework specifically designed for crypto and emerging technologies—and replacing it with integrated digital asset oversight within standard supervisory processes.

Previously, OCC had removed the prior approval requirement for certain crypto activities for banks in March, marking a shift from a cautious stance following the market events of 2022–2023.

Together, these steps send a clear message: regulators now believe they have sufficient knowledge of digital asset risks to use traditional supervisory tools to oversee these activities. Crypto is no longer viewed as an exception but as part of the mainstream financial landscape.

### Government Policy Under Trump Spurred Change

The rapidly changing policy landscape is driven by strong signals from the government. President Donald Trump publicly supported a more favorable environment for digital assets, and OCC's actions are seen as part of a broader effort to connect traditional financial infrastructure with the crypto world.

The administration is currently considering an executive order to penalize banks that discriminate against crypto businesses, which would limit the ability of large financial institutions to refuse or cut off fiat flows related to digital asset activities.

Policy advisors close to the government argue that these steps are necessary to ensure innovation in the crypto space continues to develop in the US and remains within the oversight of US regulators, rather than shifting to other jurisdictions.

### Systemic Risk Concerns

However, not all observers welcome these advances. Critics warn that deeper integration of banks into the crypto market—known for volatility and lack of transparency in some areas—could create pathways for market shocks to propagate into the core financial system.

The fundamental concern is that risk control measures may not keep pace with the speed of new integrations. If banks begin structuring large-volume intermediary transactions with increasing complexity, gaps in risk oversight could become serious issues during stressed market conditions.

Nevertheless, OCC's move was motivated by the recognition that requiring prior approval does not prevent banks from participating in this space—it only creates legal uncertainty. Recent decisions replace that uncertainty with clear regulatory frameworks, allowing regulators to monitor these activities directly and in real time.