US regulators clear banks to act as intermediaries in cryptocurrency transactions

09 December 2025

Banks in the United States have now been given the green light to serve as intermediaries in cryptocurrency transactions, a major shift in regulation that could reshape how digital assets flow through traditional finance.

The Office of the Comptroller of the Currency announced guidance on December 9, 2025 allowing banks to engage in what are called “riskless principal” crypto transactions meaning banks can buy crypto from one counterparty and simultaneously sell it to another, acting essentially as brokers without holding crypto on their own balance sheets. Under this structure, banks do not warehouse crypto assets (except in rare cases), which regulators believe minimizes market-risk exposure.

This development represents a continuing deregulatory push under the current administration. It builds on earlier moves by regulators this year, when banks were cleared to engage in crypto-asset custody, deal with stablecoins, and even participate in distributed-ledger networks without needing case-by-case approval. For many in the crypto and finance industries, this marks a turning point, an official merging of traditional banking frameworks with the world of digital assets.

Proponents argue the change could make cryptocurrency markets more stable, transparent and accessible. Banks already have long-standing compliance, reporting, and risk-management systems. By allowing them to act as intermediaries, regulators may help channel crypto trading through familiar infrastructures. For retail and institutional investors, that could mean improved trust, regulatory clarity, and potentially lower friction and fees when buying or selling crypto assets.

Critics warn that the move also brings real risks. Integrating volatile crypto markets with traditional finance could, in their view, create new pathways for systemic instability particularly if a major price swing or collapse in the crypto world spills over into banking. Others have noted that banks taking on intermediary roles could further blur the boundary between speculative assets and mainstream finance.

The new policy comes at a time when interest in crypto remains high among both institutions and individual investors. Several large banks in the U.S. have reportedly been preparing to expand services tied to crypto and digital-asset offerings. This regulatory change could accelerate that trend, opening the door for banks to offer more robust crypto-related services, from brokerage to settlement, and perhaps even advisory roles in time.

From a regulatory perspective, the guidance signals a deliberate departure from the caution that followed the crypto-market turmoil of 2022 and 2023. Since then, regulators had imposed tighter guardrails around bank involvement with crypto. Now, with the issuance of what is known as Interpretive Letter 1188, the path is cleared for banks to act more like traditional brokers for crypto trades, under regulatory oversight rather than suspicion.

For customers, this may eventually translate into a more seamless experience. Crypto exchanges and fintech platforms may begin channeling more of their operations through established banks. Depositors and investors who were previously hesitant might find comfort in the familiar banking system’s compliance safeguards. For many, this change could mark the moment when crypto moves from fringe alternative to mainstream financial option.

Whether this shift leads to widespread, responsible adoption of crypto or ushers in new financial risks will depend largely on how banks, regulators and markets respond. The coming months will be critical as industry participants test these new boundaries and regulators watch for unintended fallout.