The US OCC confirms that banks have the authority to engage in riskless principal crypto asset transactions.

Jinse Finance reported that the US Office of the Comptroller of the Currency (OCC) today issued Interpretive Letter 1188, confirming that national banks are permitted to engage in allowable banking activities related to riskless principal crypto asset transactions. Such transactions involve the bank acting as principal in a crypto asset transaction with one client while simultaneously entering into an offsetting transaction with another client. The bank acts as an intermediary, does not hold a crypto asset inventory, and operates in a manner similar to a broker acting as an agent. As with any activity, national banks must conduct these activities in a safe and sound manner and comply with applicable laws.