On December 9, 2025, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1188, allowing national banks to engage in riskless principal transactions involving crypto-assets, provided these activities are conducted safely and in compliance with applicable law.
Understanding Riskless Principal Transactions in Crypto-Assets
The letter discussed a specific setup whereby the bank acts as an intermediary, buying an asset from one party and immediately reselling it to another, with offsetting orders executed simultaneously. This structure results in minimal risk exposure (primarily settlement risk). The intent is for the bank to hold no crypto inventory, except in rare cases where settlement does not occur as expected, in which case the asset is expected to be sold as soon as possible.
Regulatory Expectations: Safe, Sound, & Compliant Execution
The OCC emphasized that any bank-facilitated crypto-asset activities must be conducted in a “safe and sound manner” and in compliance with all applicable laws. These activities will be supervised as part of the OCC’s ongoing regulatory oversight.
How Existing Banking Law Supports the OCC’s Decision
In its supporting analysis, the OCC noted that banking law has long authorized activities incidental to the business of banking. Riskless principal transactions in securities are already recognized as permissible activities. To the extent crypto transactions can be structured in a similarly riskless manner, the OCC determined that the same legal rationale applies.
Why the OCC Is Allowing Banks to Act as Crypto Intermediaries
When reviewing banks’ intentions to engage in riskless crypto-asset transactions, the OCC agreed that allowing banks to act as intermediaries could provide regulated alternatives to unregulated crypto exchanges, reduce exposure to unregulated market participants, enhance customer trust, and expand banks’ service offerings. These services are comparable to traditional brokerage and custody services and represent a logical extension of existing crypto-asset custody activities.
The OCC also concluded that the risks associated with riskless principal crypto transactions (credit and settlement) are similar to those present in securities and derivatives transactions, areas where banks already have established expertise in risk management.
Support for Your Next Steps
Riskless principal crypto-asset transactions present multiple opportunities for banks in the near future. If you need further guidance or have any questions on this topic, we are here to help you navigate the evolving regulatory landscape and new requirements. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
