Crypto continues to gain ground in the United States, and this time, it’s the Office of the Comptroller of the Currency (OCC) that is taking a step forward. The agency has just announced that national banks will now be able to hold and use cryptocurrencies in specific cases. A decision that could transform the way financial institutions interact with digital assets.
⚪️ Can banks hold crypto?
According to an interpretive letter published by the OCC, banks are now permitted to hold cryptocurrencies to pay network fees on blockchains. These fees are necessary to carry out banking activities 'otherwise permitted,' such as testing platforms related to crypto.
Adam Cohen, deputy chief legal counsel of the OCC, stated that this measure would allow banks to "expand their activities without exposing themselves to the operational risks" associated with acquiring cryptocurrencies from third parties.
⚪️ A change of course under the Trump administration
During the Biden era, the OCC had adopted a much more cautious approach towards crypto. Banks were thus required to obtain the regulator's approval before engaging in activities related to digital assets. Other regulators, such as the FDIC, had even discouraged banks from engaging in certain activities deemed too risky.
But the Trump administration, significantly more favorable to crypto, began to dismantle these restrictive policies. In March, the OCC annulled the policy requiring regulator approval, and large banks were also allowed to hold cryptocurrencies for their clients and even participate in certain activities related to stablecoins.
This new announcement from the OCC thus marks a further step towards the integration of crypto into the traditional banking system. By allowing banks to hold cryptocurrencies on their balance sheets, the regulator opens the door to greater involvement of financial institutions in the crypto ecosystem.
