Trump Administration Approves U.S. Banks as Crypto Intermediaries
Riskless principal
This type of activity is called “riskless principal” trading, it allows a bank to buy cryptocurrency from one customer and immediately sell it to another. The bank does not take on a long-term position, which reduces its exposure to the volatile crypto market. Under the new rules, banks do not need special approvals for each transaction, but they must follow strict regulatory guidelines. The move could have a big impact on both banks and the cryptocurrency market. Many banks had previously avoided crypto due to regulatory uncertainty and the risks involved. Now, with clear permission from the OCC, banks can provide crypto services in a regulated environment. This could make buying and…
