Breaking: The US Treasury OCC has created new guidance to allow US banks to use stablecoins


  • The US Treasury OCC, which is the largest US banking regulator has created a new guidance to allow US banks to use public blockchains and stablecoins.
  • Banks can now treat public chains as infrastructures similar to SWIFT and stablecoins like electronic stored value.

The interpretive letter addresses national banks and talks about the use of stablecoins, stating that these financial institutions can store or validate payments. 

As discussed below, INVNs and related stablecoins represent new technological means ofcarrying out bank-permissible payment activities. We therefore conclude that a bank mayvalidate, store, and record payments transactions by serving as a node on an INVN.

The OCC has stated several times that banks can conduct permissible payment activities using new technologies. Using INVNs to facilitate transactions is a new means of transmitting payment instructions and validating payments. 

Like ESV, stablecoins can serve as electronic representations of those U.S. dollars.Instead of value being stored on an ESV card, the value is represented on the stablecoin. Thisdistinction is technological in nature and does not affect the permissibility of the underlyingactivity. Banks may use new technologies that afford a new means of carrying out permissible banking functions, such as providing payments services and facilitating payments

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

Bitcoin bull market top to be beyond $60K as miners and whales drive price higher

Bitcoin has recorded a 101% return in Q1 this year, outperforming many traditional assets. Institutional demand continues to be a massive driver for the Bitcoin price. Miners have stopped selling the leading cryptocurrency, and Bitcoin whale addresses have been increasing. 

More Bitcoin News

Chainlink Price Prediction: LINK approaches make-or-break point

Chainlink price failed to overcome the resistance barrier at $35 for the third time in a row. A decisive close above $37.40 could seal the bullish fate, but a breakdown of $30 could also trigger a downtrend.

More Chainlink News

Dogecoin pauses before continuing 35% ascent

Dogecoin price breached an ascending triangle pattern on April 11, triggering a bull run. DOGE spiked nearly 17% in a single candle on the 12-hour chart hitting $0.080. Now, a retracement to the immediate support level at $0.071 seems likely before it starts to climb again.

More Dogecoin News

XRP price rally and Ripple's legal victories could mean settlement with SEC impending

Ripple Labs and its executives scored another victory recently in its ongoing legal battle against the US Securities & Exchange Commission. Judge Sarah Netburn denied the SEC access to the personal banking information of Brad Garlinghouse and Chris Larsen.

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: SEC commissioner cozies up to BTC ETF, on-chain metrics reset making way for volatile move

Bitcoin’s mainstream adoption has soared over the last couple of months, with institutions like Visa, Goldman Sachs, Morgan Stanley, and others dipping their toes in the BTC markets. Likewise, prices look primed to advance further despite the ongoing consolidation phase.

Read the weekly forecast

BTC

ETH

XRP