Customers with stablecoin assets and the stablecoin issuer will be kept reserves by national banks and US Federal Savings Banks. This is the announcement from The Office of the Comptroller of the Currency (OCC).
National banks to hold stablecoin reserves
The announcement was made by a letter clarifying the regulatory procedures authorizing banks to invest in stablecoins, which are essentially asset-backed cryptocurrencies, many times a fiat currency such as the US dollar. The Tether, Gemini dollar, and USD coin are examples of dollar-backed stable coins.
â€œNational banks and federal savings associations currently engage in stablecoin-related activities involving billions of dollars each day. This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner.â€
Regulatory crypto clarity provided by the OCC
The letter also states that any activities related to stablecoins should be subject to the provisions of anti-money laundering laws and specific financial laws such as the Banking Secrecy Act. And the bank will have all discretion when the stablecoin as associated and held in a hosted wallet.
The official statementÂ read:
â€œAccordingly, national banks may receive deposits from stablecoin issuers, including deposits that constitute reserves for a stablecoin associated with hosted wallets.â€
PaypalÂ to accept crypto payment in the near future?
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