The U.S. Office of the Comptroller of the Currency (OCC) has officially authorized national banks to hold and use cryptocurrency for the purpose of paying blockchain network fees—marking one of the most significant regulatory shifts in the sector in years.
The decision, issued through Interpretive Letter No. 1186, confirms that banks can maintain crypto assets on their balance sheets when those assets are necessary for “otherwise permissible” banking activities.
This approval effectively removes a major operational barrier that has slowed banks’ ability to work directly with public blockchain networks such as Bitcoin and Ethereum, where network fees—commonly known as “gas fees”—are mandatory for processing transactions.
Key Takeaways
- National banks are now permitted to hold and spend cryptocurrency to pay blockchain network fees for lawful banking activities.
- Banks can keep crypto on their balance sheets for testing internal or third-party blockchain platforms.
- Exposure to crypto must be minimal relative to bank capital and managed under strict risk controls.
- The guidance reflects a pro-crypto regulatory shift under Comptroller Jonathan Gould, expanding banks’ participation in digital asset markets.
A Green Light for Holding and Spending Crypto
The OCC stated that national banks may pay network fees on blockchain systems as part of providing lawful banking services. This includes custody operations, customer transactions, or any activity that relies on blockchain networks for settlement.
To support these activities, the regulator now permits banks to hold crypto as principal, as long as the amount is limited to what the bank reasonably expects to need. This also extends to digital assets held for testing blockchain-based platforms, whether developed internally or sourced from vendors.
According to Adam Cohen, the OCC’s senior deputy comptroller and chief counsel, the move helps banks avoid unnecessary risk:
“Permitting the bank to engage in the proposed activities enables it merely to expand… pre-existing permissible activity without having to expend resources or expose itself to operational and counterparty risks associated with acquiring the necessary crypto-assets from a third party.”
Why This Matters
Banks interacting with blockchain networks face a structural challenge: you cannot send a transaction without the network’s native asset. For Ethereum, that means ETH; for Bitcoin, BTC. With today’s guidance, banks no longer need to rely on external liquidity providers to acquire these tokens every time they need to use the blockchain.
The OCC described these activities as “incidental to the business of banking.” Historically, banks have held foreign currencies, banknotes, or shares in payment systems to conduct operations. The agency emphasized that crypto, in this context, is simply the modern equivalent of those tools.
The letter notes that banks must keep their exposure minimal relative to capital levels and maintain strong controls for operational, liquidity, cybersecurity, market, and legal risks.
Policy Shift Under New Leadership
This guidance represents a major pivot from the more cautious stance taken under the Biden administration. During that period, the OCC required national banks to seek explicit approval before engaging in nearly any crypto-related activity.
Other agencies, including the FDIC, discouraged banks from interacting with public blockchains due to concerns that transactions could not be censored or halted if needed.
The shift began earlier this year when the OCC rescinded the Biden-era restrictions and reaffirmed that banks could provide custody services, interact with stablecoins, and participate more broadly in blockchain infrastructure.
Today’s announcement comes under Comptroller Jonathan Gould, a Trump appointee who was confirmed in July 2025. Under his leadership, the agency has sought to normalize banks’ participation in digital asset markets.
Expanding the Role of Banks in Crypto
The OCC’s stance positions U.S. banks to become more active participants in the blockchain economy.
In recent months, the regulator also issued Interpretive Letter 1184, which allowed national banks to offer crypto custody and trading services, outsource crypto operations to approved third parties, and provide related functions such as compliance and recordkeeping.
The latest guidance goes a step further by allowing banks to directly hold and spend crypto assets for their operational needs. This could accelerate adoption by reducing friction, lowering reliance on external crypto exchanges, and enabling banks to integrate blockchain rails into traditional financial services.
With new stablecoin regulations still being drafted under the GENIUS Act, the OCC’s move signals that core crypto operations involving public blockchains are already acceptable for regulated institutions—as long as they are tied to lawful banking activities and conducted under strict risk management.
What Comes Next
Banks exploring blockchain-based settlement, tokenized assets, or stablecoin-related services now have clearer regulatory backing to proceed. The guidance also strengthens the infrastructure needed for banks to participate in on-chain transactions without unnecessary delays or third-party exposure.
As more institutions adopt blockchain technology, the OCC’s interpretive letter may serve as a foundation for a broader integration of crypto into mainstream financial services. For now, the message from the country’s top banking regulator is clear: holding and using crypto for operational fees is not only allowed—it’s a natural part of modern banking.
