According to the US Office of the Comptroller of the Currency, Banks will now be allowed to act as intermediaries on crypto transactions. The US bank regulator issued new guidance saying that banks can engage in what are known as “riskless principal” transactions that involve crypto assets. “There may be other instances where a national bank may hold crypto-assets as principal outside the context of the riskless principal transactions discussed in this letter,” a letter from the office on Tuesday reads.
The update from the office of the Comptroller comes on the heels of the CFTC announcing that listed spot-crypto products will begin trading in U.S. federally regulated markets on CFTC-registered futures exchanges. It is the latest step toward crypto having a deeper role in the US financial world, with institutional interest in digital assets skyrocketing this year. In addition, it further pushes forth the nation’s push to become the “crypto capital of the world” in the eyes of the Presidential administration.
“The business of banking includes brokerage of financial investment instruments,” the Comptroller’s office’s letter continues. This view reflects national banks’ traditional role as financial intermediaries, rather than being solely limited to enumerated securities brokerage activities. Specifically, “[a]s part of their traditional role as financial intermediaries, banks have broad powers to buy and sell financial investment instruments as agents for customers.”
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The Comptroller’s announcement of banks acting as crypto intermediaries also comes following the CFTC announcing it is launching a pilot crypto program for digital assets, including bitcoin and stablecoins, to be used as collateral in derivatives markets. The agency also revised its guidance on tokenized collateral and withdrew “outdated requirements” following the enactment of the GENIUS Act.
The crypto market responded positively to the news, continuing its rebound that began over the past week. The overall market cap is up just over 4.17%, while Bitcoin is back above $93,000.
