Overview
- Interpretive Letter 1188, issued December 9, confirms national banks may conduct riskless principal crypto-asset transactions by buying from one party and immediately reselling to a customer.
- The OCC says banks should face only limited credit and settlement risk because positions are offset near-instantly, and supervisors will examine these activities under existing processes.
- A preliminary OCC review found nine major national banks restricted services to lawful industries, including crypto firms, based on business type rather than financial risk, and the inquiry is ongoing.
- The review covered JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC, TD, and BMO, with Comptroller Jonathan Gould pledging accountability for any unlawful practices.
- Gould continues to back equal treatment for crypto charter applicants, noting 14 de novo applications this year and early market uptake such as PNC offering direct bitcoin trading and Bank of America enabling adviser-recommended crypto allocations.