JPM, BAC, WFC: U.S. Banks Approved to Act as Intermediaries on Crypto Transactions

U.S. banks such as JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) have been given the green light by regulators to act as intermediaries on cryptocurrency transactions.TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off The Office of the Comptroller of the Currency (OCC) has issued new guidance that allows major banks to engage in transactions involving cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Simple or "riskless" transactions involving digital assets won't face regulatory scrutiny, said the OCC. The move to enable U.S. banks to act as crypto intermediaries marks a significant step by the administration of U.S. President Donald Trump to bridge the gap between traditional financial services and cryptocurrencies. Banks as Crypto Brokers The new rules effectively enable banks such as JPMorgan Chase, Citigroup (C), and others, to act as cryptocurrency brokers by purchasing assets from one counterparty while simultaneously selling those assets to another counterparty. Under the new arrangement, banks do not hold cryptocurrency assets themselves during the process, except in rare circumstances, according to the OCC. They simply act as a broker and move the digital assets from one party to another. Traditional banks are increasingly adopting cryptocurrency products and services as the Trump administration loosens the rules and regulations pertaining to digital assets. Is JPM Stock a Buy? The stock of JPMorgan Chase has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 11 Buy and six Hold recommendations issued in the last three months. The average JPM price target of $344.31 implies 13.82% upside from current levels.