OCC Grants U.S. Banks Limited Approval for Crypto Holdings in Operational Roles

The Office of the Comptroller of the Currency (OCC) has issued a landmark interpretive letter allowing national banks to hold minimal cryptocurrency balances for specific operational needs. Interpretive Letter 1186 permits crypto usage exclusively for blockchain network fee payments, tokenized transaction processing, and infrastructure testing—marking a cautious but deliberate step toward institutional crypto integration.

Banks may now allocate small on-balance-sheet reserves to support regulated activities like blockchain-based payment systems. The guidance emphasizes strict risk controls and prohibits speculative holdings, providing clarity for firms developing tokenized settlement rails without endorsing broad crypto exposure.

This regulatory pivot reflects growing federal acknowledgment of blockchain's role in financial infrastructure, though constraints remain tight. The MOVE could accelerate institutional experimentation with BTC, ETH, and other assets tied to payment networks and enterprise blockchain projects.