OCC Confirms US Banks Can Use Crypto for Gas Fees
- The OCC issued guidance allowing US banks to hold specific cryptocurrencies for paying network gas fees.
- Banks may hold crypto-assets necessary for testing permissible crypto-related platforms.
- This guidance builds on a May letter permitting banks to handle digital assets for customers and outsource some activities.
- The OCC referenced the GENIUS stablecoin bill, establishing a framework for payment stablecoins, signed into law in July.
- Implementation of the GENIUS Act is pending final regulations from the US Treasury and Federal Reserve.
The OCC’s recent guidance clarifies that authorized national banks can manage cryptocurrency holdings to facilitate transactions requiring stablecoin payments, which may incur network fees. This marks a shift towards more supportive regulations for financial institutions handling digital assets.
As per the new guidelines, banks can now utilize crypto assets on their balance sheets specifically for paying gas fees associated with stablecoin transactions. (Source)
