The OCC authorized national banks and financial institutions to hold cryptocurrencies on their balance sheets.
The Office of the Comptroller of the Currency (OCC) has issued a new interpretative letter that represents a significant change in the regulation of digital assets in the United States. According to letter number 1186, national banks now have the option to hold cryptocurrencies on their balance sheets, provided they are used for operational purposes and not for speculative purposes. This means that financial institutions can acquire certain digital assets to support activities related to their operations, always under rigorous security and regulatory compliance standards.
This authorization allows, for example, banks to hold cryptocurrencies such as ether (ETH) to pay transaction fees on blockchain networksThese are known as “gas fees.” It is important to clarify that the measure does not authorize the purchase or sale of cryptocurrencies for investment or speculation purposes, but rather limits their use to functions “incidental to the banking business,” a category that encompasses activities necessary for the normal operation of banks.
However, this new regulation makes it easier for traditional banks to integrate more clearly into the crypto ecosystem, albeit with regulatory prudence that seeks to protect the stability of the financial system.
With this regulation, the United States is taking another important step in the role of banks in the cryptocurrency market, promoting an integration that keeps pace with technological advances and the needs of the financial sector, while remaining mindful of the importance of maintaining trust and transparency at all times.
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Cryptocurrencies as an operational tool for US banks
The new guidance issued by the Office of the Comptroller of the Currency (OCC) addresses a practical reality that banks currently face: blockchain networks require specific tokens to validate and execute transactions. For example, on Ethereum, each transaction is paid in ETH, creating an inherent need for financial institutions that hold crypto assets or interact with decentralized platforms to manage these tokens.
Until now, many entities had to rely on external intermediaries to obtain these tokens, which entailed additional costs, operational complexity, and risks associated with price volatility or potential transaction delays. With the new framework, banks will be able to mantener in their balance sheets a limited amount of cryptocurrencies, provided it is proportional to their operational needs and the size of their capital, thus seeking a balance between functionality and security.
The OCC also emphasizes that banks must implement rigorous controls to manage the inherent risks of these assets, including operational, market, liquidity, legal, and cyber risks. The intention is to enable more direct participation in the crypto ecosystem without compromising financial stability or customer security.
This update to the agency's regulations is part of a broader process by the OCC to modernize its approach to digital assets. Under the leadership of Jonathan Gould, the Comptroller of the Currency, the institution has adopted a more receptive stance toward integrating blockchain technologies into traditional banking. This approach had already been implemented. permitted Banks will be able to offer cryptocurrency custody services, operate nodes on blockchain networks, and collaborate with stablecoin issuers, driving a gradual convergence between traditional financial systems and the crypto world.
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Banking integration with crypto assets: A new regulatory step
Although the scope of the measure is limited, its implications are significant. Allowing banks to hold crypto assets for technical purposes reduces reliance on intermediaries and facilitates smoother integration between traditional banking infrastructure and decentralized networks.
The benefits this measure can bring are diverse. First, improves operational efficiencySince banks will be able to directly manage the fees required to execute transactions on the blockchain, this will result in faster processing times and reduced costs. Furthermore, as it is a regulated and supervised activity, it will be strengthens institutional legitimacyincreasing the confidence of both customers and the market in the use of crypto assets within the banking environment.
Another important impact is the simplification of internal processesIt facilitates operations such as settlements, international payments, and identity verifications, thanks to more direct integration with blockchain-based solutions. This direct connection also Reduces exposure to third parties by eliminating the need for intermediaries for the acquisition and handling of tokens, which in turn minimizes risks associated with delays or unexpected variations.
In short, this measure represents a step towards closer collaboration between traditional and digital banking, paving the way for banks to take advantage of the technological benefits of blockchain without losing the security and regulatory framework demanded by customers and regulators.
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A new era for digital assets
Interpretative Letter 1186 issued by the Office of the Comptroller of the Currency (OCC) represents a significant step forward in the regulation and acceptance of crypto assets within the traditional banking sector in the United States.
While it doesn't radically revolutionize the financial landscape, this approach establishes a clearer framework that recognizes that certain banking functions legitimately require the use and management of digital tokens. This change marks a turning point after years of regulatory skepticism, facilitating a more harmonious coexistence between traditional finance and decentralized blockchain-based technologies.
