The Office of the Comptroller of the Currency (OCC) has issued new guidance clarifying that national banks may engage in “riskless principal” transactions in crypto-assets. These transactions involve matching customer buy and sell orders without holding inventory, provided they are conducted safely, soundly, and in compliance with applicable laws.
This guidance, along with recent remarks from Comptroller Jonathan Gould and ongoing industry debate, underscores a maturing regulatory framework for digital assets and signals continued innovation within the banking sector.
Key Developments in OCC Crypto Guidance
1. OCC Interpretive Letter 1188: Riskless Principal Crypto Transactions
- National banks may facilitate customer crypto trades as riskless principal, mirroring long-standing securities practices.
- Activities must be supported by robust governance, vendor oversight, liquidity management, and Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) controls.
- The OCC maintains a technology-neutral approach, focusing on risk management and compliance rather than the underlying asset class.
2. Chartering Digital Asset Firms: Even-Handed Supervision
- Comptroller Gould emphasized that digital asset firms seeking national trust charters should be evaluated under the same standards as traditional applicants.
- Electronic custody and safekeeping are not new; the OCC sees no justification for treating digital assets differently.
- There is a notable increase in de novo charter applications, reflecting industry interest.
3. The Evolving Policy Horizon: Tokenization and Stablecoins
- The Federal Deposit Insurance Corporation (FDIC) is considering guidance on tokenized deposit insurance and a potential application process for stablecoin issuers.
- Industry voices are clarifying the differences between stablecoins and tokenized deposits – two concepts often conflated but distinct in structure and regulatory treatment.
What This Means for Financial Institutions
- Permissible, but with Controls: Riskless principal crypto transactions are allowed, but banks must demonstrate strong governance, operational resilience, and compliance aligned with examiner expectations.
- Charter Pathways Remain Open: National trust charters are a viable route for qualified digital-asset firms. The OCC’s stance is technology-neutral and focused on sound risk management.
- Preparation is Key: As tokenization and payment stablecoins advance, banks should refine internal controls, compliance programs, and risk management frameworks – especially around custody, settlement, BSA/OFAC, and third-party risk.
The Bottom Line: Navigating OCC Crypto Guidance
The OCC’s latest guidance signals a clear regulatory path for banks exploring digital assets. While opportunities are growing – from riskless principal transactions to tokenization and stablecoins – success will depend on strong governance, compliance, and risk management.
Ready to Move Forward? How Wolf & Company Can Help
Wolf & Company partners with financial institutions to operationalize digital asset strategies, including:
- Policy and control design
- AML program readiness
- Custody operations assessments
- Third-party/vendor due diligence
- Board and executive education
Our team helps you innovate with confidence – balancing opportunity and risk in a rapidly evolving regulatory environment.
Contact us today to start building your digital asset strategy.
