CMC News

U.S. Banks Cleared To Hold #Crypto for Network Gas Fees

The Treasury Department's Office of the Comptroller of the Currency has authorized national banks to maintain cryptocurrency holdings specifically for paying #blockchain network fees. The regulatory guidance issued Tuesday represents a shift in how traditional financial institutions can interact with digital assets under federal oversight.

Banks can now store digital assets on their balance sheets to cover transaction costs on blockchain networks, according to Interpretive Letter 1186 released by the OCC. The authorization extends to holding crypto for testing permissible platforms related to digital asset services.

Adam Cohen, senior deputy comptroller and chief counsel at the OCC, stated the policy allows banks to expand existing activities without exposing themselves to operational risks from acquiring #crypto through third-party providers. The regulator emphasized that all activities must comply with safety and soundness standards under applicable law.

The guidance referenced $ETH as a specific example, noting that Ethereum network transactions must be denominated in the native token. Without the ability to hold $ETH directly, banks would need to maintain separate accounts, execute spot trades before each transaction, or engage third-party fee providers, adding complexity and cost.