The Office of the Comptroller of the Currency (OCC), the main regulator of US national banks, has issued new guidance confirming that banks are allowed to hold cryptocurrencies to pay fees on blockchain networks.
In an interpretive letter, the OCC said that national banks are permitted to hold digital assets as principal if required to test approved crypto-asset platforms.
“Permitting the bank to engage in the proposed activities enables it merely to expand… pre-existing permissible activity without having to expend resources or expose itself to operational and counterparty risks associated with acquiring the necessary crypto assets from a third party,” said Adam Cohen, senior deputy comptroller, chief counsel at OCC.
The OCC also confirms that banks can hold the necessary assets to test custody systems, transfers, node operations, recordkeeping and compliance controls.
This reduces operational and counterparty risks that come from relying on third parties.
The work can be done using tools built internally or sourced from outside vendors.
