OCC new regulation allows US banks to legally engage in cryptocurrency asset trading intermediary services

The Office of the Comptroller of the Currency (OCC) recently issued new guidance, officially confirming that nationwide banks are permitted to act as neutral intermediaries in cryptocurrency transactions. This decision paves the way for the banking system to participate in digital asset liquidity in a legal manner.

According to industry analysts, the operational logic for banks in such transactions is relatively straightforward—after receiving crypto assets from clients, they quickly transfer them to liquidity providers. Throughout the process, the bank’s asset holding time is extremely short, mainly to meet technical settlement requirements, thus avoiding exposure to market volatility risks.

Regulatory Clear Boundaries for Business Activities

This OCC regulation clearly defines the role of banks—banks can serve as brokers, assisting both buyers and sellers in transaction matching and settlement. However, the regulation also prohibits banks from establishing proprietary positions or engaging in proprietary trading in crypto assets. In other words, the bank’s role is limited to a “channel” function, not a “trader” role.

The emergence of this regulatory framework marks a shift in the attitude of US financial authorities toward bank participation in the crypto market—from previous ambiguity to a relatively clear legal framework. As a result, banking institutions now have the opportunity to expand their business within a compliant framework.