US Banks Can Now Use Crypto Holdings for Gas Fees: Regulator's Update
Date Published
US banks hold a prominent position in global crypto adoption trends for 2025, according to Chainalysis reports. The Office of the Comptroller of the Currency recently clarified that national banks may use crypto holdings to pay network gas fees. This guidance supports broader institutional engagement with digital assets.
Understanding the OCC's New Guidance
The OCC issued Interpretive Letter 1186 on November 18, 2025. It permits banks to hold crypto assets on balance sheets for covering foreseeable blockchain fees in approved activities.
Banks must ensure these practices align with safety and soundness standards. The letter emphasizes compliance with existing laws to mitigate risks.
This builds on prior permissions for crypto custody services. Earlier in May 2025, the OCC allowed outsourcing of such activities to third parties.
Link to the GENIUS Stablecoin Act
The clarification ties directly to the GENIUS Act, signed into law in July 2025. This bill establishes a federal framework for stablecoins, including licensing and reserve requirements.
Under the Act, banks can issue stablecoins and handle related transactions. The OCC notes that stablecoin operations often incur network fees payable in crypto.
Regulators like the Treasury and Federal Reserve will finalize implementation rules soon. This process may take several months but promises clearer paths for cefi entities.
Implications for Crypto adoption
This development accelerates crypto adoption among traditional banks. Institutions can now test blockchain platforms more efficiently using held crypto assets.
Chainalysis data shows the US topping global adoption indexes in 2025. Institutional participation, including banks, drives this trend with stablecoins seeing rapid growth.
According to a16z's State of Crypto report, stablecoins processed billions in volume this year. Banks' involvement could further mainstream these tools for payments.
CeFi and regulation in Focus
Centralized finance stands to benefit from tighter bank . Banks acting as custodians or agents can facilitate stablecoin transactions seamlessly.
The guidance requires robust risk management practices. Banks must anticipate fee needs without excessive holdings to avoid volatility exposure.
Experts highlight this as a balanced approach to regulation. It encourages innovation while upholding consumer protections and financial stability.
According to the OCC letter, banks
may hold amounts of crypto-assets as principal necessary for testing otherwise permissible crypto-asset-related platforms.
This statement underscores operational flexibility.
The analytics insight report notes deeper integration of digital assets into banking. It fosters compliant institutional participation in cefi ecosystems.
Expert Insights and Market Reactions
Industry analysts view this as a pivotal shift under the current administration. Reduced regulatory burdens enable banks to explore crypto without prior hesitations.
A Brookings article discusses stablecoin issues post-GENIUS Act. It stresses the need for regulators to address nonbank issuers alongside banks.
Market observers predict increased liquidity in networks like Ethereum and Solana. Banks could move trillions in assets through regulated channels.
Social media reactions highlight excitement over this regulatory green light. Users see it as a win for bridging traditional finance and crypto.
High-engagement posts emphasize the marginal yet positive impact on adoption. They note banks' new ability to hold crypto for fees.
Broader Trends in 2025
Crypto adoption rates among high-income US households reach over 5 percent this year. SmartAsset data links this to regulatory clarity boosting confidence.
Stablecoins emerge as a key focus for banks in 2025. McKinsey reports suggest an inflection point with fewer headwinds for tokenized cash.
regulation evolves to include IRS oversight on crypto transactions. New reporting rules align US practices with global standards like the OECD framework.
This ensures transparency and curbs tax evasion in offshore holdings. Banks must adapt systems for compliant operations in cefi.
Future Outlook
The OCC's move positions US banks as leaders in crypto integration. It paves the way for innovative services in payments and custody.
Ongoing Senate negotiations on a digital asset market structure bill could expand this further. Combined with GENIUS Act rules, it promises comprehensive regulation.
This clarification enhances crypto's legitimacy in banking, promoting safe . It highlights the sector's maturation, offering educational value for institutions navigating cefi and regulation.
