The Office of the Comptroller of the Currency (OCC) has confirmed that banks can act as intermediaries on crypto transactions as the Trump administration aims to connect TradFi and crypto activities.
OCC issued Interpretive Letter 1188, the new guidance, confirming that national banks can now engage in riskless principal transactions that involve cyrpto assets without receiving scrutiny from the regulator. In these types of transactions, banks act as brokers, buying assets from one counterparty and entering into a transaction to sell them to another counterparty simultaneously. This way, the bank doesn't hold on to the assets in inventory as part of the process, with rare exceptions.
Evolving regulations from the OCC
Donald Trump took a friendly approach to the crypto industry, rewriting laws and removing guardrails to increase adoption while his family engaged in crypto ventures. For instance, the National Cryptocurrency Enforcement Team (NCET) was dissolved, reflecting a move away from strict enforcement. This also includes a more restrained enforcement policy from the SEC and public messaging from the President in support of a more permissive environment for digital innovation.
The US President received criticism from experts, saying that these changes made the traditional financial sector and the loosely regulated and volatile industry of crypto assets more interconnected, which can lead to systemic risks.
US bank regulators have withdrawn many restrictions on crypto activities by banks established under Joe Biden’s administration. In March, the OCC approved crypto activities to be operated by banks and removed earlier guidance requiring firms to seek advance approval from regulators before diving into crypto.
Back in May 2025, OCC announced that it would allow banks to handle crypto on behalf of customers. This includes trading digital assets held in custody and outsourcing certain functions to third-party providers, allowing national banks and federal savings associations to sell and buy crypto as instructed by customers if the assets are already held in custody. Additionally, in March, the regulator authorised banks to participate in select digital asset activities.
