OCC Guidance on Banks Holding Crypto for Gas Fees
The US Office of the Comptroller of the Currency (OCC) issued new guidance on Tuesday, clarifying that national banks are permitted to hold specific cryptocurrencies for the purpose of paying network gas fees, under certain conditions. This OCC guidance on banks holding crypto gas fees marks a significant development for traditional financial institutions engaging with digital assets.
Background of the OCC Guidance
According to the notice, the OCC stated that US banks may hold cryptocurrency on their balance sheets when it is necessary to pay network, or gas fees, involved in permissible banking activities. The regulator explained that a national bank “may hold amounts of crypto-assets as principal necessary for testing otherwise permissible crypto-asset-related platforms,” with such activities required to be conducted in a safe and regulated manner (Cointelegraph).
This announcement expands on a previous OCC letter from May, which allowed banks to manage digital assets for customers and outsource select crypto activities to third parties. Both pieces of guidance reflect a shift in crypto regulation by the OCC during the Trump administration, aiming to ease the compliance burden on banks integrating digital asset services.
Stablecoins and Regulatory Developments
The OCC’s recent letter also references the GENIUS stablecoin bill, signed into law in July. This legislation creates a regulatory framework for payment stablecoins in the United States. Under the new guidelines, authorized national banks may be required to pay network gas fees for stablecoin transactions, either from custodial assets or through designated agents. Despite the bill’s passage, its regulations will not be fully implemented until further rulemaking by the US Treasury and Federal Reserve is complete, a process expected to take months.
While these regulatory measures take shape, US lawmakers in the Senate are reportedly advancing discussions for a digital asset market structure bill. Industry stakeholders consider this bill one of the most consequential pieces of crypto legislation currently under review.
Market Reaction and Next Steps
The OCC guidance on banks holding crypto gas fees is anticipated to give banks greater confidence in integrating digital assets into their operations, particularly as regulatory frameworks for stablecoins and other cryptocurrencies develop. The OCC emphasized that all related activities must be conducted “in a safe and sound manner and in compliance with applicable law,” according to the official notice.
The pace of further regulatory developments will depend on the finalization of rules for stablecoin management by federal agencies and the outcome of digital asset legislation being negotiated in Congress. Financial institutions and crypto industry participants are expected to closely follow these changes.
For more updates on cryptocurrency and digital asset regulations, visit the Vizi cryptocurrency news section.
Sources
Reporting via Cointelegraph
