Regulator Clarifies US Banks can Handle Gas Fees using Crypto Holdings

The United States Workplace of the Comptroller of the Currency (OCC) released assistance to banks verifying their authority to hold particular cryptocurrencies for the function of paying network gas costs.

In a Tuesday notification, the OCC stated United States banks were permitted to hold crypto on their balance sheets to pay network, or gas costs, supplied the deals were for acceptable activities. The regulator stated that an authorized nationwide bank “might hold quantities of crypto-assets as primary essential for evaluating otherwise acceptable crypto-asset-related platforms.”

” Just like any activity, a nationwide bank should carry out these activities in a protected way and in compliance with suitable law,” stated the OCC.

The notification broadened upon a Might letter notifying banks that they might deal with digital properties on behalf of their clients and contract out some crypto activities to 3rd parties. Both sets of assistance came amidst the OCC striking a various tone on crypto under United States President Donald Trump, lowering the regulative problem on banks.

Related: UK reserve bank still ‘disproportionately careful’ about stablecoins

The Tuesday letter pointed out the GENIUS stablecoin expense signed into law in July, which develops a regulative structure for payment stablecoins. According to the OCC, stablecoin deals at authorized nationwide banks will likely need network costs, enabling the bank to pay through properties in its custody or a representative.

Carrying Out GENIUS Act, wanting to pass market structure

Although the stablecoin expense was signed into law in July, the legislation is still most likely to be months far from application, as the United States Treasury and Federal Reserve require to settle the guidelines.