WASHINGTON, Dec 9 (Reuters) – Banks will be allowed to act as intermediaries in crypto transactions, a U.S. banking regulator said on Tuesday, in the latest move by the Trump administration to narrow the gap between the traditional financial sector and crypto business.
The Office of the Comptroller of the Currency has issued new guidance stating that banks can engage in so-called “risk-free principal” transactions that involve crypto assets and will not face scrutiny from the regulator.
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In such transactions, banks effectively act as brokers, purchasing assets from one counterparty while simultaneously entering into a transaction to sell those assets to another counterparty. The bank does not keep any crypto assets in inventory as part of the process except in rare circumstances, the OCC said.
US President Donald Trump has taken a welcoming approach to the crypto sector, rewriting the rules and removing guardrails, while his family ventures into crypto projects.
Critics say such changes have made the traditional financial sector and the loosely regulated and volatile world of cryptocurrencies more interconnected, potentially creating systemic risks.
US banking regulators have already lifted many restrictions on crypto activities of established banks under President Joe Biden. In March, the OCC approved some banks’ crypto activities and scrapped previous guidance telling companies to seek pre-approval from watchdogs before entering the sector.
Reporting by Pete Schroeder; edited by Barbara Lewis
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Covers financial regulation and policy from Reuters’ Washington bureau, with a particular focus on banking regulators. He has covered the economic and financial policy of the American capital for 15 years. His previous experience includes positions at The Hill newspaper and The Wall Street Journal. Holds a master’s degree in journalism from Georgetown University and an undergraduate degree from the University of Notre Dame.
