US national banks have been granted the right to act as intermediaries in crypto transactions.

Key points:

• The OCC has confirmed that national banks can participate in cryptocurrency transactions as risk-free intermediaries without holding assets on their balance sheets.
• Financial institutions are required to comply with legal regulations and control key risks.

The Office of the Comptroller of the Currency (OCC) has confirmed that national banks can participate in cryptocurrency transactions as risk-free intermediaries without placing digital assets on their balance sheets. This move paves the way for banks to provide regulated brokerage services in the cryptocurrency sector.

According to the OCC, the innovation will allow customers to conduct transactions with crypto assets through regulated banks rather than through less reliable and unregulated platforms. At the same time, banks are required to ensure that any activity involving cryptocurrencies complies with the law and falls within their authority. They must also have mechanisms in place to control operational, compliance, and market risks.

The regulator clarified that the main risk of such transactions is counterparty credit risk, in particular settlement risk. However, credit risk management is a common banking practice, and banks already have experience in this area.

The guidance refers to 12 U.S.C. § 24, which allows banks to conduct risk-free transactions as part of their normal banking activities. It also states that crypto assets classified as securities are subject to existing rules that already allow risk-free transactions with equity capital.

The OCC’s non-binding guidance letter reflects the agency’s position on what transactions national banks can perform. The document was released the day after OCC Chief Jonathan Gould emphasized that cryptocurrency companies applying for a federal banking license should be treated the same as traditional financial institutions.

Gould noted that the banking system has the growth potential and that there is no reason to treat digital assets differently from the electronic storage services that banks have been providing for many years.