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The Office of the Comptroller of the Currency (OCC) has confirmed that U.S. banks are permitted to hold crypto assets.
In Interpretive Letter #1186 – published today in response to an unnamed bank's request to hold crypto assets to conduct GENIUS Act-permissible stablecoin banking activities – the OCC concluded that banks can hold crypto assets "as principal" (i.e.; on their own balance sheets) in amounts reasonable to pay blockchain network gas fees.
What's the Scoop?
- Banks Can Hold Crypto (Kind Of): In Interpretive Letter #1186, the OCC confirmed that national banks may legally hold crypto-assets as principal, but only in amounts needed to pay network fees, or gas, for otherwise permissible crypto activities.
- Network Fees Approved : The OCC ruled that paying blockchain network fees is “incidental to the business of banking.” Without holding the native token (like ETH for the
Ethereum network), banks can’t settle transactions, operate nodes, execute smart-contract-driven activity, or deliver crypto custody services. - Testing Allowed Too: Banks can also hold crypto to test custody platforms, trading rails, settlement flows, cybersecurity controls, and AML systems. The OCC notes this is necessary for safe and sound operation.
- Still Constrained: The authority is narrowly scoped. Banks must keep holdings “de minimis” relative to capital, using them only for foreseeable operational needs.
https://x.com/USOCC/status/1990812931747926185
