An interpretative letter published by the Office of the Comptroller of the Currency could stimulate the adoption of crypto and blockchain payments in the U.S. The letter indicates that U.S. banks are now permitted to utilize stablecoins and act as blockchain node operators. In the federal banking regulators’ interpretive letter, the OCC approved that federally regulated banks could partake in blockchain networks. They will be known as independent node verification networks (INVNs) and can utilize stablecoins.
Moreover, banks that partake as a validator on an INVN must ensure that they are conscious of the operational, compliance, or fraud risks. Though the OCC itself expresses the permitted technology as an “independent node verification network,” the term is approximately interchangeable with publicly-run blockchains like Ethereum and Bitcoin. Those blockchains confirm the transactions are implicating specific stablecoins such as Tether and USDC.
Earlier, the OCC authorized banks to own stablecoin reserves in September. Today’s declaration enables those institutions to take a more dynamic role in supporting a blockchain network. Thus, it provides a more remarkable ability to employ stablecoins in financial activity. Jeremy Allaire, CEO of Circle, has approved the news. He stated that the news is a massive success for crypto and stablecoins, including Circle’s stablecoin, USDC.
Brian Brooks on OCC’s latest move for US Banks
Brian Brooks, a former Coinbase executive and the Acting Comptroller of the Currency, elucidates in a press release that the move is about leveraging the cryptocurrency industry to maintain peace, as he claims the United States has too long depended on the private sector for innovation. He has supervised the publication of two other interpretative letters and has concluded several crypto-friendly moves.
Furthermore, last month, Brooks publicly supported a letter on Financial Markets by the President’s Working group. The letter emphasized how stablecoins should be regulated in the U.S. Moreover, Donald Trump has nominated Brian Brooks to serve a complete five-year term heading up the agency. Nevertheless, Brooks still awaits verification in the Senate, which is unlikely to happen before President Trump leaves office this month.
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