OCC Issues Guidance Stating Banks Can Engage in Crypto Transactions

The US Office of the Comptroller of the Currency (OCC) has issued guidance on the type of permissible banking activities related to crypto assets. nks. In its Interpretative Letter 1188, the regulator stated that banks can act as riskless principals in such transactions.

The clarification represents the latest pro-crypto guidance from the banking regulator as it continues efforts to integrate crypto with banking.

Banks Can Serve as Intermediaries in Crypto Transactions

The letter is a response to the request for clarification from the OCC Senior Deputy Comptrollers, Stephen A. Lybarger. Lybarger had asked whether banks can engage in riskless principal crypto-assets transactions with or on behalf of customers.

According to the letter, this is permissible. The letter explained that such transactions involve the bank serving as an intermediary between two parties in the transaction, purchasing from one party and simultaneously selling to another.

It said:

“A national bank may engage in riskless principal crypto-asset transactions as part of the business of banking.  Such transactions involve a bank acting as principal in a crypto-asset transaction with one customer while simultaneously entering into an offsetting transaction with another customer.”

The guidance emphasized that banks are not holding the assets and such transactions are similar to brokerage activities.  It described such transactions as logically expected since banks are also responsible for crypto custody now.

However, the regulator emphasized that banks must conduct such transactions safely and comply with applicable laws.

OCC Continues Pro-Crypto Moves

Meanwhile, the guidance demonstrates how the OCC has intensified its efforts to integrate cryptocurrency into the banking sector. A few weeks ago, OCC confirmed that banks can hold a small amount of cryptocurrency on their balance sheet to cover the gas fees required for testing blockchain platforms. The regulator has also given banks the green light to participate in crypto custody.

Unsurprisingly, OCC’s pro-crypto approach has renewed interest from crypto firms looking to obtain banking charters. 14 de novo charter applications have now been filed in 2025, with crypto entities responsible for the majority.

However, banking industry trade groups, such as the Bank Policy Institute and the Independent Community Bankers of America, have opposed these banks. They claim that allowing national trust banks to engage in non-fiduciary custody violates the law.

Nevertheless, Comptroller Jonathan Gould has countered the opposition, stating that banks have engaged in non-fiduciary custody for years. At the Blockchain Association policy summit, Gould stated that national trust banks have approximately $2 trillion in non-fiduciary custodial assets under administration as of Q3 2025.

He stated that prohibiting them from such activity would therefore affect several existing banks.

He said:

“Prohibiting national trust banks from engaging in nonfiduciary activities would not only threaten to undermine the dynamic and evolving nature of the federal banking system but would also disrupt well over a trillion dollars in traditional activities of existing national trust banks.”

Meanwhile, the regulator has insisted that the US banking system needs to continue evolving with technology, noting that it is its biggest strength.