US Regulator Clears Banks to Hold Crypto ‘As Principal’ for Network Fees

• The OCC authorized national banks to hold crypto on their balance sheets to pay “gas” fees.
• This “principal” holding status removes a key barrier, allowing banks to process on-chain payments.
• The move positions banks to compete with stablecoins, which are eroding traditional deposit bases.

U.S. regulators have cleared a final operational hurdle for banks entering the blockchain space. The Office of the Comptroller of the Currency (OCC) confirmed on Tuesday that national banks can legally hold cryptocurrency. This authority is strictly limited to assets held as “principal” to pay for blockchain network fees.

The ‘Gas’ Rule: Why Banks Need to Hold Crypto as Principal

The new guidance, published in Interpretive Letter No. 1186, addresses a critical infrastructure problem. To process transactions on public blockchains, an operator must pay “gas” fees using the n…

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