US National Bank and federal savings association authorities may use stablecoins for payment activities.
The regulatory environment for cryptocurrencies in the US is tightening, but as far as national banks are concerned, they are getting green if they want to use stablecoins.
The official report states that national banks and federal savings association authorities can now use stablecoins to perform payment activities and other bank-permissible functions.
The letter, published by the Office of the Comptroller of the Currency (OCC), also clarifies the right to participate in independent node verification networks (INVN).
While governments in other countries have built real-time payments systems, the United States has relied on our innovation sector to deliver real-time payments technologies. Some of those technologies are built and managed by bank consortia and some are based on independent node verification networks such as blockchains,
Acting Comptroller of the Currency Brian P. Brooks
The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way. Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.
Acting Comptroller of the Currency Brian P. Brooks
The letter also emphasizes the efficiency, effectiveness and stability of payment activities, which can be ensured by engaging in INVN. The OCC also thinks that payment activities can also be more resilient, as networks are decentralized and allow transactions to be credibly verified by a large number of nodes.
INVNs such as Blockchain also limit unauthorized access, manipulation or the addition of inaccurate information to the database.
However, the Office of the Comptroller of the Currency emphasizes that new technologies require sufficient knowledge to enable banks to manage potential risks in a safe and reliable manner.
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