U.S. Regulator Allows Banks to Conduct Cryptocurrency Transactions

• The OCC has confirmed that cryptocurrency transactions may be considered banking activities.
• National banks are permitted to conduct risk-free transactions in the role of principal, while hedging the risk with an offsetting transaction.
• The regulator requires legal compliance and strict control of operational and compliance risks.

The U.S. Office of the Comptroller of the Currency (OCC) confirmed that national banks can conduct cryptocurrency transactions in the role of risk-free principals. In a clarification letter, the agency specified that such activities can be performed subject to strict compliance with applicable laws.

According to the document, a bank can act as a principal in a cryptocurrency transaction with one client and simultaneously make a compensating transaction with another. This model replicates the risk-free equity transactions used in traditional markets.

This approach allows for regulated brokerage services in the crypto sector, the OOC noted.

In banking practice, “risk-free principal activity” means that the institution is formally a party to the transaction for the duration of the transaction. However, it does not assume price risk because it instantly executes a mirror (offsetting) transaction with another client or counterparty.

The regulator emphasized that the new approach makes it easier to access transactions through controlled banks rather than unregulated platforms. The letter noted that several license applicants cited the growing demand for such services and their importance to businesses.

At the same time, the OCC reminded that banks are required to confirm the legal admissibility of all crypto transactions and provide full risk monitoring procedures. The regulator cites counterparty credit risk, including settlement risk, as the main risk of such transactions, which institutions have traditionally been able to limit through their own management processes.

The clarification followed a statement by OCC head Jonathan Gould that digital assets should be treated in the same way as other electronic forms of storage and settlement. He stressed that there is no reason to set different standards for crypto firms than traditional banks when considering applications for federal licenses.

Recall, we wrote that on December 11, 2025, the CEOs of major US banks will discuss the structure of the crypto market with senators.