Wintermute OTC Chief: Banks in Crypto Trading Operate as Brokers, Cannot Hold Positions or Trade for Profit

KuCoinFlash

Release Time:12/30/2025 04:20:18

Wintermute OTC head Jake pointed out that banks in the crypto space operate as brokers, not traders. The recent OCC guidance clarifies that national banks can facilitate crypto trades but cannot hold positions or trade for profit. Jake explained that banks buy assets from clients and pass them quickly to liquidity providers, avoiding price risk. This model aligns more with TA for crypto strategies, where execution matters over holding. He added that banks lack the ability to engage in value investing in crypto, since they cannot take long-term positions. The setup ensures they act purely as intermediaries in the transaction process.

Source:Show original

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.