OCC Allows Banks to Hold Crypto for Network Fees

The Office of the Comptroller of the Currency, the primary regulator for national banks in the United States, issued new guidance on Tuesday allowing these institutions to hold cryptocurrency assets on their balance sheets to pay network fees on blockchain systems. The policy, outlined in Interpretive Letter 1186, also permits banks to maintain small amounts of digital assets for testing blockchain platforms, marking a step toward deeper integration of traditional banking with distributed ledger technology.

The guidance clarifies that national banks may acquire and store native tokens, such as Bitcoin or Ethereum, to cover transaction fees required for operations on public blockchains. These holdings are limited to amounts reasonably needed for foreseeable activities, ensuring they support lawful banking functions like settlements, custody services, or payment processing. Banks must adhere to established risk management practices, including controls for market volatility, liquidity, cybersecurity, and legal compliance, while keeping exposures minimal relative to their capital.

This approach treats cryptocurrency holdings as an operational necessity rather than speculative...