Banks Can Now Trade Crypto Without Risk? 😱 OCC’s Latest Letter Explained!

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In a stunning twist that could only be described as “regulatory alchemy,” the Office of the Comptroller of the Currency (OCC) has declared national banks may now engage in “riskless principal transactions” involving crypto-assets. 🤯 This means banks can now buy and sell digital coins for customers without, you know, actually risking anything. Cue the sound of a single suspicious coin clinking in the background.

This revelation arrives via Interpretive Letter 1188, which is less a legal document and more a bedtime story for compliance officers: “Once upon a time, there was a bank that didn’t lose money… at least, not yet.”

OCC’s New Framework (Because Who Needs Bureaucracy?)

According to the OCC, acting as a “riskless principal” is perfectly fine because it’s “just like what banks already do.” Specifically, they’re now allowed to buy and sell stuff customers own, as long as it’s in a custody arrangement. Because nothing says “trust” like a bank handling your crypto like it’s a library book. 📚

National banks can now facilitate these transactions as agents-because who needs to take risks when you can just pass the buck to your customers? The result? A regulated environment where banks can pretend they’re not playing with fire while still burning it. 🔥

Key Concern For Banks In Crypto Transactions

The OCC helpfully clarified that crypto transactions are different from traditional securities because, well, crypto uses blockchain instead of paper. The main concern? Counterparty credit risk. Because nothing says “safe investment” like relying on someone who might vanish like a wizard’s hat in the wind. 🧙‍♂️

Settlement risk? Oh, that’s just the polite way of saying “we might not get paid.” The OCC’s letter concludes with the wisdom of a thousand sleepless nights: “Do this in a safe and sound manner.” Because nothing says “safety” like a 400-page legal document written in 13th-century English. 📜

As with any activity, a bank that conducts riskless principal crypto-asset transactions must do so in a safe and sound manner and in compliance with applicable law. The OCC will examine riskless principal crypto-asset activities as part of its ongoing supervisory process.

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2025-12-09 21:59