Federally regulated banks can use stablecoins to make payments and other activities, the Comptroller of Currency (OCC) Office Fees said Monday.
An interpretation letter was published by the Federal Banking Regulator on whether national banks and the Federal Savings Association could participate in independent node verification networks (INVN, otherwise known as blockchain networks) or use stablecoins. The letter said these financial institutions could participate as nodes on the blockchain and store or validate payments.
Any banks that participate in INVN must be aware of the risks of operational, compliance or fraud while operating, the OCC press release warned.
However, the OCC said that due to the large number of nodes used to test the transaction, INVN “could be more resilient than other payment networks”, which in turn could tamper with the limits.
Christine Smith, executive director of the Blockchain Association, said on Twitter that “the letter states that Blockchain has a similar position to other global financial networks, such as Swift, ACH and FedWire.”
Brian Brooks, the currency’s acting controller, said in a statement that while other nations have created real-time payment systems, the U.S. The private sector “relies” on creating such technologies, possibly supporting the use of cry cryptocurrencies – special fixedcoins – as an alternative to other real-time payment systems.
Brooks has overseen the publication of two other interpretive letters and several other crypto-friendly moves during the agency’s oversight, including a letter to federal banks asking them to provide issuers and store reserves for fixedcoins.
Last month, Brooks announced written support by the President’s Working Group on Financial Markets stating how stablecoins should be regulated in the U.S.
President Donald Trump has twice appointed Brooks to head the agency for a full five-year term, including Earlier this week. However, it is not clear whether the US Senate will schedule a confirmation vote. As of press time, President-elect Joe Biden is unlikely to do so before he takes office on January 20.
Monday’s interpretation letter arrives on the same day as the proposed Financial Crime Enforcement Network (Finsen) rule closes. The controversial regime had only a 15-day comment period, and is reported to have been chaired by Treasury Secretary Steven Munchin, who appointed Brooks to the OCC in early 2020.
“[Monday’s OCC letter] It goes on to show that there is no out-and-out attack on cryptocurrencies, there are bright spots in government that realize that crypto networks will form the basis of future payment systems and other financial services applications, so we welcome this kind of interpretation. Said.
Read the full letter below: