U.S. Banks Just Got the Green Light to Pay Crypto Gas Fees—Here's What That Means for Institutional Adoption

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The regulatory fog astir banks and integer assets cleared somewhat aft the nation's apical banking regulator confirmed that nationalist banks whitethorn wage blockchain transaction fees and clasp crypto assets for operational purposes—a method clarification that could velocity organization adoption of on-chain finance.

The Office of the Comptroller of the Currency said successful an interpretive missive past week that it is explicitly outlining which crypto-asset activities are permissible for the nationalist banks it oversees. For investors watching institutional-adoption trends, the determination adds different ceramic to the regulatory instauration large fiscal institutions request earlier venturing further into integer assets.

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The OCC’s missive confirms 2 circumstantial activities that nationalist banks are authorized to undertake successful the crypto space, some centered connected the applicable realities of operating connected blockchain networks.

First, nationalist banks tin wage web fees—commonly known arsenic state fees—on blockchain networks to facilitate different permissible banking activities, according to the interpretive letter. These are the transaction costs required to process operations connected networks similar Ethereum oregon different blockchain platforms.

Second, banks whitethorn clasp crypto assets arsenic main connected their equilibrium sheets, but with constrictive limitations. The holdings indispensable beryllium indispensable to wage web fees for which the slope anticipates a reasonably foreseeable need, oregon indispensable for investigating crypto-asset-related platforms, whether developed internally oregon acquired from 3rd parties.

This isn’t a broad authorization for banks to go crypto trading shops. The permissions are tightly scoped astir operational necessity alternatively than speculative investment.

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The OCC made wide these activities indispensable conscionable accepted banking standards. National banks indispensable behaviour crypto operations successful a harmless and dependable mode and successful compliance with applicable law, the missive specified.

Banks engaging successful these activities volition request robust hazard absorption frameworks and compliance programs—the aforesaid regulatory expectations that use to their accepted banking activities.