Analysis: U.S. banks are authorized to conduct cryptocurrency trading services, which may reshape the market competition landscape

According to CoinDesk, the Office of the Comptroller of the Currency (OCC) recently issued an interpretive letter confirming that national banks can engage in "risk-free principal" cryptocurrency transactions, allowing banks to facilitate cryptocurrency trading without holding inventory or assuming market risk.

According to Bloomberg, JPMorgan is exploring the provision of cryptocurrency trading services for institutional investors, marking a shift for Wall Street banks from the experimental phase of cryptocurrency to the implementation phase. Experts believe this regulatory shift will have a significant impact on the crypto market. With the advantages of regulatory legitimacy and customer trust, banks are expected to capture a substantial portion of retail order flow, particularly putting competitive pressure on independent crypto exchanges that lack banking licenses.

Banks are expected to focus on high liquidity assets such as Bitcoin, Ethereum, and regulated stablecoins, rather than offering all crypto tokens. Market observers note that this competitive landscape may not be a zero-sum game, as many banks will still rely on crypto-native companies for liquidity, pricing, and infrastructure, creating opportunities for collaboration.