U.S. banking regulators allow existing banks to broker cryptocurrency transactions

Source: DigitalToday Original Title: US Bank Regulators Allow Traditional Banks to Broker Crypto Transactions Original Link:

The US Office of the Comptroller of the Currency (OCC) has reportedly allowed traditional banks to broker cryptocurrency transactions.

According to the OCC, banks can process cryptocurrency transactions as risk-free intermediaries, in a manner similar to the existing intermediary structure of financial markets.

This decision aims to allow customers to trade cryptocurrencies through traditional banks rather than on unregulated or relatively less regulated platforms. The OCC emphasized that banks must confirm legal eligibility and establish procedures to manage operational, compliance, and market risks before brokering crypto transactions.

The OCC also clarified that if a specific cryptocurrency is classified as a security, brokerage transactions are permitted under existing laws. While this guidance is not legally binding, it is interpreted as a signal that the traditional financial sector can officially enter the crypto market.

The OCC chief stated, “There is no reason for digital assets to be treated differently from traditional financial services,” stressing that crypto companies obtaining a federal bank charter should be held to the same standards as traditional banks.