Yesterday the Office of the Comptroller of the Currency (OCC) published an interpretative letter allowing banks to hold sufficient crypto-assets in order to pay blockchain transaction charges such as gas fees. Examples in the letter hint at potential expansion of crypto holdings beyond gas fees.
The OCC also published details of no action letter requests from 2022-2024 during the Biden administration, showing that no stablecoin or crypto requests were granted. This marks a shift from 2020 and early 2021, when the OCC issued interpretive letters approving these activities. In November 2021, the Biden administration required supervisory approval for crypto and DLT activities – a directive rescinded earlier this year.
Of 21 applications, eight crypto and stablecoin requests were withdrawn, four were deemed unnecessary due to no direct DLT involvement, and nine were granted. All nine of the approved activities related to permissioned blockchains. Based on the timings and descriptions, Ledger Insights analysis indicates that Citi received three and JP Morgan six. Apart from the eight 2022 requests withdrawn, no other banks requested OCC approval for DLT payment activities during this period.
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