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

According to a TechFlow news report on December 23, CoinDesk reported that the Office of the Comptroller of the Currency (OCC) recently issued an explanatory letter confirming that national banks can participate in “risk-free principal” Crypto Assets trading, allowing banks to act as agents for coin transactions without holding inventory or assuming market risk. According to Bloomberg, JPMorgan is exploring providing crypto trading services for institutional investors, marking Wall Street banks' transition from the experimental phase to the implementation phase.

Experts believe that 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 absorb a considerable portion of retail order flow, particularly putting competitive pressure on independent crypto exchanges without banking licenses.

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