U.S. OCC approves banks to conduct risk-free crypto asset trading: Impact on Ripple's banking license application

Source: CoinEdition Original Title: Riskless Crypto Trades Now OK for Banks: What This Means for Ripple’s Banking Charter Original Link: https://coinedition.com/ripple-is-one-step-closer-to-becoming-a-real-us-bank/

Regulatory Approval and Trading Models

December 9, 2025, the Office of the Comptroller of the Currency (OCC) confirmed that National Banks in the United States can now engage in low-risk crypto asset transactions. This decision responds to recent applications seeking clarification on whether such activities fall within the scope of banking services. OCC Chief Counsel Adam Cohen signed the letter following a response to Deputy Comptroller Stephen Lybarger.

Under this approval, banks can act as intermediaries in crypto transactions, helping clients trade cryptocurrencies without actually holding the assets. This setup is called riskless principal trading, similar to the operation of brokers: facilitating trades without owning the assets.

In practice, a bank buys crypto from one client and immediately sells it to another, never holding the cryptocurrency in its inventory. This reduces risks such as market volatility and limits the bank’s credit and settlement exposure.

This decision is significant because it clarifies that banks can handle crypto transactions even if these assets are not classified as securities, provided certain rules are followed.

For cryptocurrencies considered securities, banks rely on existing legal authority under 12 U.S.C. § 24(Seventh). For non-securities cryptocurrencies, the OCC views these transactions as extensions of normal banking activities, such as custody or financial intermediation.

The OCC emphasizes that banks must conduct these transactions securely and comply with all laws and regulations, just like handling other banking services.

Potential Advantages for Ripple National Trust Bank

Ripple Labs, the parent company of Ripple National Trust Bank (RNTB), will closely monitor these developments. The bank is seeking OCC approval to operate as a national trust bank. It aims to provide trust services and manage the reserves for Ripple USD (RLUSD), a stablecoin developed by Ripple.

Ripple’s proposal will see RNTB integrating blockchain technology into traditional financial services. The bank’s application is under review, with approval potentially arriving by the end of this month, providing Ripple with a regulatory framework to expand its digital asset operations in the U.S.

With the OCC now permitting banks to conduct riskless principal crypto transactions, RNTB can more easily manage crypto reserves and offer blockchain-based financial services. The approval of the trust charter will be a significant milestone for Ripple and the broader digital asset industry.

Industry Opposition

In July of this year, major banks led by the American Bankers Association requested the OCC to suspend federal bank license applications from crypto companies like Circle and Ripple.

They argued that approving these licenses would violate existing federal rules. Specifically, they cited legal ambiguities, limited public oversight, and concerns over whether crypto companies meet the trust and fiduciary standards required of national banks.

Critics also pointed out that core crypto services, such as holding customer cryptocurrencies, do not qualify as traditional trust activities. They warned that approving licenses without public review could bypass longstanding regulations and undermine protections within the U.S. financial system.

Impact on Ripple’s Application

The OCC’s letter now provides clear guidance for banks engaging in crypto asset transactions. This guidance allows banks to conduct riskless principal crypto trades, offering legal certainty.

Timing is crucial for Ripple and its application for a national trust bank. It indicates that the regulatory environment for crypto banking is becoming more structured, potentially accelerating the approval of Ripple’s trust charter.

Therefore, Ripple Labs may see a favorable environment to complete its trust charter approval by the end of this month. This would strengthen Ripple’s position in the U.S. market and set a precedent for other companies seeking similar approvals.