OCC Greenlights Banks to Pay Crypto 'Gas Fees', Paving Way for Deeper Blockchain Integration

3 hours ago7 min read2 comments

In a landmark decision that accelerates the merger of traditional and decentralized finance, the U. S.Office of the Comptroller of the Currency (OCC) has issued definitive guidance authorizing national banks to pay transaction fees, known as 'gas,' on public blockchain networks. This critical clarification removes a major operational barrier, enabling banks to actively participate in networks like Ethereum and Bitcoin as validators, node operators, and facilitators of on-chain transactions.The OCC's Interpretive Letter #1179 affirms that banks can leverage new technologies, including independent node verification networks (INVNs), and pay the necessary fees to participate. This provides a legal foundation for institutions to move beyond passive custody of digital assets into active network engagement.For compliance departments, this resolves a longstanding gray area: the logistical challenge of legally acquiring small amounts of native tokens like BTC or ETH to pay for network services. With this mandate, banks are now positioned to build substantial blockchain infrastructure, which promises to enhance the entire ecosystem's security, liquidity, and credibility.This development represents a logical evolution from previous OCC guidance under former Comptroller Brian Brooks, which allowed banks to hold crypto assets and operate stablecoin networks. The new ruling addresses the fundamental mechanics that power these networks, effectively giving banks the regulatory approval to not only enter the crypto space but to become integral participants.The implications are far-reaching, paving the way for banks to facilitate cross-border stablecoin payments and develop sophisticated tokenized asset products, with gas fees becoming a standard cost of business similar to traditional banking fees. The guidance comes with necessary safeguards, requiring banks to maintain robust risk management frameworks, comply with anti-money laundering regulations, and ensure all activities fall within permissible banking law. While some decentralization advocates may view this as traditional finance co-opting crypto's ethos, the move is widely seen as essential for bridging decentralized finance with the trillion-dollar traditional financial system, transforming speculative potential into regulated, bankable reality.

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