According to the letter of the United States Office of the Comptroller of the Currency (OCC) published this last Monday, US federal banks will now be granted the opportunity to store stablecoin reserve currencies. The OCC states that stablecoin providers have actually been utilizing US banks for years now, albeit, under a vague regulatory system. That being said, the regulators are now aiming to provide a more structured and comfortable environment with this development. The OCC states that as stablecoins are rapidly becoming more and more popular, banks should make sure that they are assessing every given risk and must conduct proper diligence for the betterment of all.
OCC’s letter clarifies that this would initially be exclusive to stablecoins supported by another currency on a 1:1 ratio. This means that the tokens dependent on the so-called money “baskets,” such as Saga and a portion of Libra, will be omitted for now.
The standing Comptroller, Brian Brooks, states that the federal savings corporations and national banks are currently deep into stablecoin-based activities. It is worth noting that these said activities explicitly involve billions of USD every single day. That being said, this new development is expected to provide a more robust regulatory confidence for federal banks to supply its clients with the right services.
Notably, ever since Brooks was given Comptroller’s seat this last March; the OCC has been persistently expanding the stature of cryptos within the United States-based banks. This latest development is another testament to his efforts to just that.