Fun

US Banks Can Now Hold Reserves for Stablecoin Issuers, Says Federal Banking Regulator

News Feed - 2020-09-22 11:09:10

US Banks Can Now Hold Reserves for Stablecoin Issuers, Says Federal Banking Regulator


The U.S. Office of the Comptroller of the Currency (OCC) on Monday published a letter clarifying that national banks and federal savings associations can now hold reserves for stablecoin issuers in the country.


According to the OCC’s interpretive letter, reserve accounts can either be funded through deposits from stablecoin issuers or deposits from individual stablecoin holders.


It stressed that banks can hold such reserves provided that ”the issuer has sufficient assets backing the stablecoin in situations where there is a hosted wallet.” The letter responds to questions regarding the application of stablecoin-related bank activities. It says:As the OCC recently reaffirmed, national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law, including those relating to the [Bank Secrecy Act] and anti-money laundering.


Stablecoins are cryptocurrencies underpinned by another asset such as a commodity or fiat currency like the U.S. dollar. They are designed to minimize the impact of price volatility. Tether (USDT) is the most widely used stablecoin worldwide. Others include USD Coin and DAI.


In a statement, Acting Comptroller of the Currency Brian Brooks noted that federally chartered banks are “currently engaged in stablecoin related activities involving billions of dollars each day.”


“This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner,” he stated.


Jeremy Allaire, chief executive officer of Circle, issuers of the USDC stablecoin, said the new OCC guidance represents significant progress for the advancement of digital dollar stablecoins in the U.S. financial system.


“With this clarity…fintech firms and banks can have more confidence in building on this innovation, while also ensuring that the guardrails and risk management expected from the U.S. banking system can be applied to this new age of internet money,” he said in a statement shared with news.Bitcoin.com.


The OCC recently allowed federally chartered banks to hold custody of crypto assets.


What do you think about the OCC’s new guidance on stablecoin reserves? Share your thoughts in the comments section below.Craig Wright"s Summary Judgment Denied - Billion Dollar Bitcoin Lawsuit Heads to TrialNEWS | 2 hours agoExecs Managing $78B in Assets Say Institutional Investors Plan to Allocate More CryptocurrenciesNEWS | 6 hours agoTags in this storybrian brooks, Circle, Federal savings associations, Jeremy Allaire, National banks, OCC letter, Stablecoins, U.S. Office of the Comptroller of the Currency (OCC)


Image Credits: Shutterstock, Pixabay, Wiki CommonsSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Dogecoin Price Breaks Out Of Bearish Trendline And Enters Ascending Channel Headed For $0.3
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
David Attlee13 hours agoFrance updates its crypto licensing regime to synchronize with MiCAThe amendments will become obligatory starting Jan. 1, 2024, and must be taken into account in by applicants for enhanced DASP re
Bitcoin Hashrate Rises Despite Price Drop, Mystery Hashpower Returns
Bitcoin Hashrate Rises Despite Price Drop, Mystery Hashpower Returns Bitcoin’s hashrate has increased a great deal, even after the leading crypto asset’s price slippe
Jesse Coghlan3 hours agoARK’s amended spot Bitcoin ETF filing is a ‘good sign’ of future approvalARK Invest and 21Shares amended spot Bitcoin ETF filing seemingly addresses earlier concerns highlighted by the SEC,
XRP Price Ready To Run To $11 ATH? Alternative Larger Metrics Show The Answer
Este artículo también está disponible en español. A crypto analyst has shared an XRP price chart, analyzing its action on the 4-hour timeframe while pinpointing key metri
Ezra Reguerra10 hours agoAxie Infinity creator to develop new game in partnership with CyberKongzSky Mavis executive Kathleen Osgood said that the catalyst for the revival of blockchain gaming would be an experience that
Mike Novogratz’s Galaxy Digital to Launch Bitcoin Fund in Canada
Mike Novogratz"s Galaxy Digital to Launch Bitcoin Fund in Canada Galaxy Digital, the crypto investment management firm founded by bitcoin bull Mike Novogratz, ha
Amber Group calls for transparency after ZKX shutdown
Amaka Nwaokocha1 hour agoAmber Group calls for transparency after ZKX shutdownThe ZKX team’s shutdown serves as a reminder of the critical role that transparency and accountability play in the success and stability of
World’s Largest Crypto ATM Company Bitcoin Depot to Go Public via SPAC Deal
World"s Largest Crypto ATM Company Bitcoin Depot to Go Public via SPAC Deal The largest cryptocurrency automated teller machine (ATM) operator, Bitcoin Depot, has revealed it has p
Devere Group CEO Predicts 3 Countries Will Adopt Bitcoin as Legal Tender This Year
Devere Group CEO Predicts 3 Countries Will Adopt Bitcoin as Legal Tender This Year The CEO of financial advisory and asset management firm Devere Group has predicted that three cou
CoinGecko enables access to on-chain DEX data via API
Ezra Reguerra11 hours agoCoinGecko enables access to on-chain DEX data via APIThe new update expands CoinGecko’s API coverage to 2.2 million tokens across 2.5 million liquidity pools.979 Total views25 Total sharesListe
Veteran Investor Mark Mobius Expects Bitcoin Price to Fall to $10,000
Veteran Investor Mark Mobius Expects Bitcoin Price to Fall to $10,000 Veteran investor Mark Mobius, the founder of Mobius Capital, expects the price of bitcoin to fall to $10,000.