Analysis: The approval granted to banks such as JPMorgan Chase to offer crypto transaction services may reshape the competitive landscape of the marke...
TL;DR
The OCC allows US banks to facilitate crypto trades without holding assets, reducing risk. JPMorgan Chase plans to offer these services, potentially dominating retail flows and pressuring unlicensed exchanges.
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According to Odaily Odaily, the U.S. Office of the Comptroller of the Currency (OCC) recently issued an explanatory letter confirming that national banks can participate in "risk-free principal" cryptocurrency trading. This allows banks to act as agents for cryptocurrency transactions without holding inventory or assuming market risk. This regulatory shift will have a significant impact on the cryptocurrency market. Currently, JPMorgan Chase is exploring providing cryptocurrency trading services to institutional investors, marking a move from the experimental stage to the implementation stage for Wall Street banks in the cryptocurrency space. Leveraging its regulatory legitimacy and customer trust, JPMorgan Chase is expected to absorb a significant portion of retail order flow, particularly posing competitive pressure on independent crypto exchage without banking licenses. (CoinDesk)