OCC Greenlights Banks for Crypto Intermediary Role

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A national US bank regulator stated on Tuesday that banks are permitted to act as intermediaries for cryptocurrency transactions.

This marks the latest action by the administration to reduce the separation between traditional finance and crypto activities.

The Office of the Comptroller of the Currency issued guidance allowing banks to engage in “riskless principal” transactions involving crypto assets without facing regulatory scrutiny. In these transactions, a bank acts as a broker, buying from one party while simultaneously selling to another.

The OCC clarified that the bank does not maintain a crypto inventory as part of this process, except in rare instances. This regulatory shift occurs as the administration has adopted a favorable stance toward the crypto sector, revising rules and reducing barriers.

Critics argue these changes have dangerously linked the traditional financial system with the volatile, lightly-regulated crypto world, creating potential systemic risks. This follows other regulatory rollbacks, including the OCC’s move in March to approve certain bank crypto activities and eliminate earlier requirements for pre-approval.