Launchy Regulatory Roundup #66 - OCC Clears Banks to Facilitate Crypto Trades

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Welcome to our 66th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

  • Headline: 👀 

  • Global Legal Roundup

  • Case Study:  🔎 

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HEADLINE

OCC Clears Banks to Facilitate Crypto Trades

State of play: The US Office of the Comptroller of the Currency has confirmed that national banks are allowed to facilitate customer crypto trades as riskless principals, meaning they can intermediate trades without holding crypto assets on their own balance sheets.

  • This activity is formally recognized as part of the “business of banking” under existing law.

  • According to the OCC’s interpretive letter, banks may act as principals in crypto transactions while simultaneously executing offsetting trades.

  • This is similar to how riskless principal transactions work in traditional financial markets.

The guidance emphasizes that banks must still assess the legal permissibility of each crypto activity and maintain strong risk management practices, particularly around counterparty and settlement risk.

  • The OCC notes that managing these risks is already a core banking function.

  • OCC head Jonathan Gould said that digital asset firms seeking bank charters should be treated no differently from traditional financial institutions.

What’s Next: National banks are likely to explore crypto brokerage style services that let customers trade digital assets directly through regulated banking channels.

Why it Matters: This lowers a major barrier between traditional banking and crypto markets. It gives customers a regulated alternative to crypto native platforms and signals that digital asset activity is now firmly within the scope of mainstream banking.

Our Take: The OCC is not creating new law, but clarifying that banks already have the authority to participate. That clarity is often what institutions need before they move.

GLOBAL LEGAL ROUNDUP

America:

  • 🇺🇲 Do Kwon sentenced to 15 years over $40B Terra-Luna collapse.

  • 🇺🇲 US Senators make 'real progress' on sweeping crypto market bill.

  • 🇺🇲 Paxos, Ripple, Circle and others secure US trust bank approvals.

  • 🇺🇲 CFTC rolls back guidance focused on 'actual delivery' of digital assets.

  • 🇺🇲 DeFi groups fire back against Citadel's call for SEC tokenization rules.

  • 🇺🇲 SEC Chair Atkins signals quick action on crypto priorities in the new year.

  • 🇺🇲 US teachers union urges Senate to withdraw crypto market structure bill.

  • 🇺🇲 CFTC clears path for ETH, BTC & USDC to be used as collateral in derivatives markets.

  • 🇦🇷 Argentina weighs allowing domestic banks to offer crypto services.

Europe:

  • 🇪🇺 Europe reconsiders crypto oversight.

  • 🇧🇾 Belarus blocks Bybit, Bitget, and OKX.

  • 🇬🇧 UK financial authority to prioritize stablecoin payments in 2026.

APAC:

  • 🇵🇰 Binance to advise Pakistan on $2B asset tokenization.

  • 🇦🇺 Australian regulator eases rules for stablecoins and wrapped tokens.

  • 🇯🇵 Japan plans major shift as crypto moves from payments to securities law.

CASE STUDY

The End of SEC vs Ondo

State of play: Ondo Finance said the US SEC has ended a multi year investigation into the company without filing any charges. The probe focused on whether Ondo’s RWA tokenization activities and $ONDO token complied with federal securities laws.

  • The investigation began in 2024 during a period of heightened regulatory pressure on crypto under the Biden administration.

  • Ondo stated it fully cooperated and consistently maintained that its tokenization model aligns with investor protection principles.

  • Ondo framed the outcome as a positive signal not only for the company but for the broader tokenized securities sector in the US.

  • Ondo linked the decision to a broader shift in Washington, where regulators are reassessing digital asset oversight and formally evaluating tokenized equities.

  • Ondo said it will continue focusing on compliance and innovation.

Our Take: The SEC did not endorse Ondo’s model outright, but closing the case without charges removes a major overhang. It suggests regulators are becoming more careful about applying old frameworks to new onchain structures.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

  • DEF’s read on Citadel vs DeFi.

  • Jed Rakoff’s read on Crypto and Government Regulation.

  • Katie’s & Alex’s read on Seeking Clear, Common Sense Stablecoin Regs.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.