OCC Greenlights Banks to Handle Crypto Transactions Safely

Highlights:

• OCC’s Interpretive Letter 1188 allows banks to perform riskless principal crypto transactions.
• Banks can now offer digital assets to clients without holding the crypto themselves.
• The guidance removes prior restrictions and enables broader, regulated crypto access for customers.

The Office of the Comptroller (OCC) of the Currency released Interpretive Letter 1188. It tells national banks that they are allowed to do “riskless principal” crypto transactions. This means banks can handle digital assets while still following their normal banking rules.

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🚨US BANKS CAN NOW HANDLE CRYPTO TRANSACTIONS

The OCC says banks may act as intermediaries in “riskless principal” crypto transactions, as the Trump administration moves to bring TradFi closer to crypto. pic.twitter.com/eGkYV0YWgq

— Coin Bureau (@coinbureau) December 9, 2025

How Riskless Principal Crypto Transactions Work in Banks

The letter says this type of deal happens when a bank buys crypto from one customer and then immediately sells it to another customer. The bank does not keep the crypto for itself. It only holds it for a moment during the settlement process. This is similar to how banks already work in normal brokerage trading. The OCC also said these transactions have very little risk because the crypto moves from one customer to another almost instantly. It also confirmed that this activity fits into a long-standing business category that banks already use for other types of assets.

The latest guidance reflects a broader trend of loosening rules for crypto services in traditional banking. Back in March, the OCC removed older rules that required banks to get prior approval before offering certain crypto activities. This move indicates growing acceptance of digital assets in mainstream financial services.

Ok some pro-crypto guidance now rolling out post-WH Summit:@USOCC rescinds previous guidance that prevented banks from engaging in any crypto activity.

Goodbye, Operation Chokepoint 2.0https://t.co/trIJeUo2Aa

— Alexander Grieve (@AlexanderGrieve) March 7, 2025

OCC Guidance Opens Wider Access to Crypto Services for Clients

Put simply, U.S. banks can now provide crypto services in a way similar to regular brokerage operations. Recently, Bank of America announced that wealth management clients can invest 1%–4% of their portfolios in digital assets. The change affects Merrill, Bank of America Private Bank, and Merrill Edge. It also opens the door for over 15,000 advisers, who were previously restricted, to actively suggest crypto options to their clients.

The letter explained the difference between crypto-assets that are securities and those that are not. For crypto-assets that are securities, banks can already do riskless principal trades. This means the bank does not take on any losses from customers. The OCC said the same rules apply to crypto-assets that are not securities. These trades are considered part of the “business of banking.” U.S. banking laws are flexible and do not limit what counts as banking. This lets banks offer new services that naturally fit with what they already do.

The OCC reviewed these trades by examining four factors: how they resemble normal banking, how they benefit banks and customers, what risks they involve, and whether state banks can perform them. The letter concluded that riskless principal crypto trades are similar to regular brokerage or custody services. They give customers regulated access to crypto while the bank faces only familiar risks, like settlement risk.

Interpretive Letter 1188 ended long-standing uncertainty about banks’ handling of crypto transactions. It gave banks a clear framework to meet customer demand without taking on the crypto themselves. This clarity has helped U.S. financial institutions include digital assets more steadily in their services.

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