The Office of the Comptroller of the Currency (OCC) — the bureau responsible for regulating and supervising all national banks — has announced that US financial institutions may hold crypto assets to cover blockchain network fees.
National Banks Allowed To Manage Crypto
In a letter released on Tuesday, the OCC stated that banks are permitted to pay network fees to facilitate activities involving digital assets, provided the banks can foresee a legitimate need for holding these currencies.
The letter, which was signed by the Senior Deputy Comptroller and the Chief Counsel of the regulatory agency, states that a bank’s proposal to manage crypto assets on its balance sheet for the purpose of settling network fees is acceptable under current regulations.
Additionally, the OCC confirmed that national banks can hold digital assets as a principal asset for testing platforms related to crypto activities, whether these systems are developed in-house or sourced from third-party services.
Banks To Trade Stablecoins For Payment Processing
The regulator acknowledged that requiring banks to rely on external parties for crypto assets could increase operational costs and risks, potentially deterring thorough testing of their systems.
Furthermore, national banks may borrow securities from custody customers that are ineligible for purchase for their own accounts. This permits banks to lend these securities to third parties without exposing themselves to credit risk from the customers.
The guidelines also indicate that banks are allowed to buy, sell, and issue stablecoins to facilitate payments. If a bank already possesses the operational capacity to manage the purchase, sale, and custody of digital assets in conjunction with other permissible activities, minimal additional operational hurdles are anticipated for acquiring, holding, and utilizing crypto to address network fees.
