Bank of America officially authorized as an intermediary for Bitcoin trading

Source: PortaldoBitcoin Original Title: Banks in the US are officially authorized to offer Bitcoin to clients Original Link: American banks are officially authorized from this week to facilitate Bitcoin and other crypto asset transactions for clients, promoting integration between the traditional financial system and the digital asset space.

The Office of the Comptroller of the Currency (OCC) formally confirmed this authorization through Interpretive Letter No. 1188, released on Tuesday. The OCC is the regulatory authority for federal banks in the United States.

According to the document, authorized financial institutions can engage in so-called “riskless principal transactions” as intermediaries in crypto asset buying and selling, without holding these assets on their own books.

In practice, banks can purchase Bitcoin from one client and resell it to another through mirror trading, eliminating market risk. This operation functions similarly to an exchange.

The OCC states that this form of agency falls within the scope of traditional “banking activities,” emphasizing that the role of financial institutions as investment intermediaries extends into the digital asset sector.

The letter also highlights that this process is considered part of the powers granted to banks by law, provided it is conducted in a “safe and sound” manner and complies with all applicable regulations.

The document clarifies that, while banks can act as intermediaries, they should not hold crypto inventories unless in specific situations, such as settlement failures.

The OCC indicates that these types of operations are comparable to common activities in banking, including securities, derivatives brokerage, and custodial services. Therefore, the OCC argues that the use of technology (in this case, blockchain networks) does not alter the fundamental nature of banking activities.

The letter also notes that allowing such operations could benefit consumers seeking to trade crypto through regulated entities, reducing reliance on unregulated exchanges.

This move marks a significant advancement in US regulation and signals greater openness of traditional financial institutions to the crypto field. By emphasizing that banks can facilitate Bitcoin transactions without taking on own risk, the OCC paves the way for banks to offer crypto buying and selling directly to clients in a safer, more transparent manner that complies with federal oversight.

It is worth noting that earlier this week, a major US bank became the first in the country to offer direct Bitcoin trading on its own digital platform, in collaboration with a leading exchange.