• The Office of the Comptroller of the Currency (OCC) has published a letter issuing stablecoin regulation guidelines.
  • Guidance is reserved only for stablecoins held in hosted wallets controlled by a trusted third party.

In a significant step for crypto adoption, the Office of the Comptroller of the Currency (OCC) has published a letter, approving national banks' and federal savings associations' authority to hold "reserves" on behalf of customers who issue stablecoins.

Acting Comptroller of the Currency Brian P. Brooks announced:

National banks and federal savings associations currently engage 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.

In the letter, the OCC clarifies several questions regarding the application of stablecoin-related bank activities. The letter notes that the guidance is reserved only for stablecoins held in hosted wallets controlled by a trusted third party. Unhosted wallets that were influenced by the individual user are not included in the guidelines.

The letter notes:

The due diligence process should facilitate an understanding of the risks of cryptocurrency and include a review for compliance with applicable laws and regulations, including those related to the Bank Secrecy Act (BSA) and anti-money laundering. 

The reserve account could be structured as either deposit of the stablecoin issuer or as deposits of the individual stablecoin holder. 
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Weak hands shaken out before ultimate bullish impulse

Bitcoin hit new yearly highs on Tuesday, shining a light on the possibility of a rally to $15,000. The liftoff carried some major cryptocurrencies upwards, including Ethereum and Ripple.

More Crypto News

Breaking: Bitcoin briefly slips below $13,000 for the first time since the last rally

After a notable rally from the low of $9,813 established on September 3, Bitcoin managed to reach the 2019-high at $13,868. Unfortunately, the price got rejected heavily and the TD Sequential indicator has presented a sell signal on the 3-day chart.

More Bitcoin News

Yearn Finance Price Prediction: YFI must hold $13,000 to avoid steep correction

Despite the bullish momentum of the entire crypto market, it seems that YFI hasn’t benefited from it, being down 16% since October 24. The digital asset is currently trading at $13,153 and shows almost no signs of recovery. 

More YFI News

Bank of Japan will not rely on China for central bank digital currency research

The Bank of Japan (BOJ) has been under pressure to announce a sovereign digital currency launch officially. However, the head of the central bank's payment system department Kazushige Kamiyama reckons that public support is required for such a move.

More Japan News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Bitcoin goes up as some of the world's largest currencies go down

While investors are waiting for BTC to retest all-time highs and shoot to the moon, it is already there. In some countries, the pioneer digital asset surpassed the peak of 2017 and hit new historic highs in local currencies.

Read the weekly forecast

BTC

ETH

XRP