US Banks Can Now Hold Crypto

The US Office of the Comptroller of the Currency (OCC) has disclosed that commercial banks can now hold cryptocurrencies. However, the regulator specified that such cryptocurrencies can only be used for the purpose of paying gas fees for blockchain transactions.

The OCC disclosed this in its Interpretative Letter 1186 issued on November 18, marking another major step in TradFi and crypto integration.

Crypto Finds its Way to on Commercial Banks’ Balance Sheets

According to the letter, the OCC is responding to a request from an unnamed commercial bank. The bank wanted to know whether it can hold crypto assets for the purpose of conducting stablecoin activities under the GENIUS Act.

The regulator responded that it is acceptable for banks, as part of their banking activities, to pay network fees on blockchain networks. It noted that the bank can hold cryptocurrencies in reasonable amounts necessary to cover these gas fees.

It said:

“A national bank may pay network fees sometimes referred to as ‘gas fees,’ on blockchain networks to facilitate otherwise permissible activities,” and may “hold, as principal, amounts of crypto-assets… necessary to pay network fees for which the bank anticipates a reasonably foreseeable need.”

The letter explained that transaction fees on distributed ledger technology (DLT) networks must be paid in the native token of the network. Using Ethereum as an example, it noted that anyone wishing to conduct a transaction on the network must have ETH.

Meanwhile, the OCC added that banks can also hold cryptocurrency for testing purposes to ensure the permissible use of crypto-asset-related platforms. The OCC noted that these transactions are similar to any other banking activities. Thus, national banks can conduct them safely and soundly as long as they comply with the relevant regulations. Adam Cohen, Senior Deputy Comptroller and Chief Counsel of OCC, signed the letter.

US Pro-crypto Moves Continue

While the recent guidance is restrictive on when banks can have crypto on their balance sheets, it remains a major development. It builds on the OCC guidance from May 2025, which allowed banks to custody and trade crypto assets for their customers.

At the time, the regulator clarified that banks can also outsource crypto custody and execution services to third parties. However, they are required to have proper risk management in place.

These guidelines serve as building blocks for integrating cryptocurrency with traditional finance. The Comptroller of the Currency, Jonathan Gould, had earlier mentioned that he would support such integration as long as it is a permissible activity.

Meanwhile, the decision also highlights how the US, under the President Donald Trump administration, has been pro-crypto. Since Trump was sworn in, almost all federal regulators in the US have relaxed restrictions on crypto.

All these efforts have led to massive adoption of crypto, especially by traditional financial institutions. With more developments on the way, particularly the Market Structure Bill, regulatory clarity is expected to continue improving.

Interestingly, the US Securities and Exchange Commission (SEC) has removed crypto from its priority list for 2026. Many believe this is a sign that the sector is no longer at risk and has become more stable and compliant.