On December 9, 2025, the OCC published Interpretive Letter 1188 confirming that a national bank may engage in riskless principal crypto-asset transactions as part of the business of banking. These transactions occur when a bank buys an asset from one party and immediately resells it to another based on a matching order.
According to the OCC, riskless principal transactions in crypto-assets are permissible under 12 U.S.C. § 24(Seventh). This applies to both crypto-assets that are securities and those that are non-securities. The OCC finds that these crypto transactions are comparable to traditional brokerage activities, securities conduit lending, and perfectly-matched derivatives, which are activities already recognized as part of the “business of banking.” It also emphasized that the primary risks, such as counterparty and settlement risk, are comparable to risks banks routinely manage.
The OCC highlighted potential benefits for customers, including access to crypto markets through a regulated institution and reduced reliance on unregulated exchanges. While affirming permissibility, the OCC stressed that banks must conduct these activities in a safe and sound manner and remain subject to ongoing supervisory oversight.
Read the OCC’s new release here.
View Interpretive Letter 1188 here.