The U.S. Office of the Currency Comptroller released its first official guidelines on stablecoins, which are a conventional currency-supported cryptocurrency.
The U.S. Office of the Currency Comptroller released the first official guidelines on stablecoins. Stable coins are coins whose value is related to conventional currency holdings. U.S. banks are already providing services to crypto issuers, but they have always been scared that doing so could potentially be illegal.
The ruling only applies to stablecoins backed on a one-to-one basis by a single fiat currency.Â
The acting Comptroller of the Currency Brian Brooks said in a statement that National banks and federal savings associations currently engage in stablecoin related activities. The statement also clarified that the ruling only applies to crypto-backed on a one-to-one basis by a single fiat currency.
A bank providing stablecoin services must comply with all regulations.Â
â€œA bank providing services in support of a stablecoin project must comply with all applicable laws and regulations and must ensure that it has instituted appropriate controls and conducted sufficient due diligence commensurate with the risks associated with maintaining a relationship with a stablecoin issuer,â€ the letter reads.
Although good news for stablecoin issuers, the “Single Fiat Currency” aspect can complicate matters for the Facebook-backed Libra Association. It was said that the latest incarnation of the long-planned online kind-off cryptocurrency of Facebook was focused on Facebook depositing several currencies in support of the Libra currency.