The Office of the Comptroller of the Currency today issued new guidance for agency staff stating that national banks may engage in riskless principal crypto-asset transactions. The guidance comes as the OCC considers several applications from digital asset firms seeking bank charters.
In a riskless principal transaction, an intermediary purchases an asset from one counterparty for immediate resale to a second counterparty, according to an OCC interpretive letter. The agency already allows national banks to engage in riskless principal securities transactions, and the key difference with crypto assets is the technology involved. “More generally, the OCC has long maintained a technology-neutral stance with regard to permissibility,” the agency said.
The letter was addressed to the agency’s senior deputy comptroller for chartering, organization and structure, who was seeking clarification on the issue in light of several applications from institutions wanting to engage in crypto activities. The OCC said that banks that engage in riskless principal crypto-asset transactions must do so in a safe and sound manner.
“The OCC will examine riskless principal crypto-asset activities as part of its ongoing supervisory process,” it said.
