OCC clears U.S. banks to run riskless principal crypto trades in 2025

The Office of the Comptroller of the Currency (OCC) has raised significant concerns regarding the practice of crypto debanking among nine major banks, including JPMorgan Chase and Bank of America, highlighting a potential resurgence of restrictive measures against the cryptocurrency sector. This supervisory review has sparked fears of a new wave of regulatory actions reminiscent of 'Operation Chokepoint 2.0.'

The Office of the Comptroller of the Currency (OCC) has clarified that U.S. banks are authorized to execute riskless principal transactions involving cryptocurrencies, enhancing their role in the digital-asset market. This decision, outlined in Interpretive Letter 1188, marks a significant regulatory shift aimed at fostering innovation and improving market liquidity.

Bitcoin's price volatility has intensified following the Federal Open Market Committee (FOMC) meeting, influenced by Federal Reserve Chair Jerome Powell's guidance for 2026 and the structure of leveraged positions in the market. This volatility is marked by significant price fluctuations, with Bitcoin stabilizing around $92,000 after a recent dip.

The cryptocurrency market remained relatively stable as the Federal Reserve implemented its third consecutive rate cut, a move that historically influences crypto prices. Despite the Fed's discussions, crypto prices showed minimal reaction, reflecting a cautious investor sentiment.

A long-dormant Ethereum (ETH) wallet and significant Bitcoin (BTC) holders have begun moving their funds in anticipation of the upcoming Federal Reserve meeting, indicating increased activity in the cryptocurrency market. This shift suggests traders are preparing for potential volatility related to interest rate decisions.

Ripple's XRP token has seen a significant drop, falling to $2.0640 from a high of $2.1780 earlier in the week, amidst a backdrop of declining social sentiment and key metrics related to the cryptocurrency. This decline follows a broader trend of weakening risk appetite in the cryptocurrency market, particularly as investors await the Federal Reserve's interest rate decision.

Bitcoin's price has experienced significant volatility as it approached the Federal Open Market Committee (FOMC) meeting, with the yearly open level of $93.5K proving to be a critical point of resistance. Traders are closely monitoring the situation as they await the Fed's interest-rate announcement, which could influence market direction.

Bitcoin has broken out of a week-long trading range, surging to $94,000 as a result of Federal Reserve rate cut expectations and a significant $150 billion increase in the overall cryptocurrency market capitalization. This surge has triggered a short squeeze, with altcoins outperforming Bitcoin during this period.