OCC permits national banks to conduct riskless principal crypto transactions

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In December 2025, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1188, stating that national banks are now permitted to participate in riskless principal transactions involving crypto-assets. 

For years, banks have faced uncertainty around the scope of permissible crypto-asset activities. The OCC’s latest guidance represents another step in the gradual evolution of federal banking regulators’ approach to digital assets, moving from initial caution toward a framework that allows innovation under appropriate safeguards. For banks considering expanded crypto-related services, understanding the provisions of this new guidance is essential. 

Understanding riskless principal crypto-asset transactions 

To understand the implications of the OCC’s letter, it’s important to first understand what a riskless principal transaction entails. Simply put, a riskless principal transaction involves an intermediary purchase of an asset from one counterparty for immediate resale to a second counterparty. 

The intermediary’s purchase from the first counterparty and sale to the second counterparty occur simultaneously. As a result, the transaction is referred to as “riskless” because the intermediary does not hold any asset in its inventory and does not enter into the transaction without also having entered into an immediate offsetting transaction. Of course, there are exceptions, in which the completion or settlement of the transaction does not occur as expected, however, such exceptions should be infrequent and short-term in nature. In this case, the asset is typically sold as soon as possible. 

As an example: a commercial customer seeking to acquire a specific crypto-asset could place an order through its bank. The bank would then purchase the asset from a counterparty and immediately transfer it to the customer, earning a fee for facilitating the transaction rather than profiting from price movements. 

Behind the OCC’s decision 

The OCC determined that riskless principal crypto-asset transactions are permissible because they are both the functional equivalent to recognized bank brokerage activities and a logical outgrowth of crypto-asset custody activities. 

Additionally, the OCC already allows banks to engage in riskless principal securities transactions. The primary differences between riskless principal crypto-asset transactions and traditional securities transactions are the nature of the underlying asset and the technology used to execute and settle the transaction. From the OCC’s perspective, these differences do not introduce fundamentally new risks, beyond those banks already manage in other brokerage-type activities. 

Finally, the OCC noted that state-chartered banks in certain jurisdictions already have authority to engage in riskless principal crypto-asset transactions. Extending similar authority to national banks promotes regulatory consistency and competitive parity across the banking system. 

Implications for banks and customers 

Engaging in riskless principal crypto-asset transactions has the potential to benefit banks by expanding their service offerings and allowing them to meet growing customer demand for digital asset exposure. As customers increasingly seek regulated alternatives to cryptocurrency exchanges and fintech platforms, banks may view these transactions as a way to remain competitive while maintaining strong risk oversight. 

From a customer perspective, the ability to transact crypto-assets through a regulated bank may provide additional confidence. Customers may benefit from enhanced transparency, established compliance programs, and clearer avenues for recourse compared to less regulated platforms. For businesses, in particular, accessing crypto-asset services through an existing banking relationship may streamline operations and reduce counterparty concerns. 

Importantly, the OCC’s guidance does not require banks to offer these services. Instead, it provides banks with the option to do so where it aligns with their business strategy, risk appetite, and customer needs. 

Compliance considerations 

In its letter, the OCC emphasized that banks must conduct riskless principal crypto-asset transactions in a “safe and sound manner” and in compliance with applicable law. As with any new product or service, banks should carefully assess the risks involved before proceeding. For tailored guidance, banks should consider reaching out to a trusted advisor. 

Ultimately, the OCC’s guidance on riskless principal crypto-asset transactions reflects a continued effort to integrate digital assets into the regulated banking system without compromising safety and soundness. While the guidance provides new opportunities for banks to meet customer demand and remain competitive, it also underscores the importance of disciplined risk management, regulatory compliance, and thoughtful implementation. 

Grace Gonzalez is an Assurance Partner at The Bonadio Group, serving financial institutions, philanthropic organizations, and employee benefit plans for 20 years. Grace is a frequent speaker on accounting matters at regional and national conferences and a trusted advisor to organizations ranging in asset size from a few million to over eight billion. Grace’s blend of technical expertise in audit and advisory services makes her an indispensable business partner to her clients. 

Opinions do not reflect those of Lehigh Valley Business or BridgeTowerMedia.