OCC Clarifies Bank Handling of Crypto Network Fees, Boosting Institutional Confidence

The Office of the Comptroller of the Currency (OCC) has issued a landmark ruling allowing national banks to pay blockchain network fees and hold minimal crypto reserves for operational purposes. Interpretive Letter 1186, dated November 18, removes a critical regulatory gray area that had hindered traditional financial institutions from fully embracing digital asset infrastructure.

Banks may now hold native tokens like ETH for gas fees when processing transactions or operating blockchain-based services—a MOVE analysts say legitimizes crypto as a operational tool rather than just a speculative asset. "This ends years of paralysis for regulated entities," remarked Mark Hensley, a market strategist tracking institutional adoption. The decision specifically covers transaction finalization and smart contract interactions where network fees are unavoidable.

Notably, the guidance extends to internal testing environments, suggesting regulators anticipate broader bank-led crypto experimentation. While the ruling doesn't endorse large-scale crypto holdings, it provides legal certainty for balance sheet allocations supporting existing services—a subtle but significant shift in the regulatory landscape.