This article was first published on Deythere.
US bank crypto rules now allow national banks to hold crypto to pay blockchain network fees. The Office of the Comptroller of the Currency (OCC) released Interpretive Letter 1186 on November 18, 2025. The guidance confirms that a national bank may hold native tokens as principal for “reasonably foreseeable” gas costs.
This marks a notable shift. Many banks previously avoided on-chain operations because they could not legally hold the needed tokens for transactions. Under the new rules, banks can run their own settlement infrastructure without relying on third parties to handle gas.
Why the Policy Change Matters
Boosting On-Chain Business
The updated US bank crypto rules allow national banks to pay fees directly to blockchain networks. OCC states these fees count as a regular banking activity rather than a speculative investment. Banks may also hold crypto for testing, creating new opportunities for tokenized products and stablecoin services.
Risk Controls Remain a Priority
The OCC requires banks to operate safely and comply with all applicable laws. This includes robust controls for liquidity, market risk, cybersecurity, and anti-money laundering. The guidance ties holdings to real operational needs and limits the size of crypto reserves.
Market and Industry Impacts
These rules may reshape how traditional banks interact with blockchain systems. By allowing banks to manage gas independently, the guidance reduces third-party dependencies and counterparty risk. It gives regulated institutions more control over their blockchain activity.
The shift also supports tokenization teams and stablecoin developers. Banks can now operate a more complete stack of services, including custody, settlement, and token deployment, without external gas agents. This may help them compete more directly with crypto native firms under the GENIUS Act framework.
Ethereum’s Role and Price Context
Native tokens like Ethereum’s ETH often fuel major public blockchains. As of mid-November 2025, Ethereum traded around 3,117 dollars based on daily data. Analysts expect ETH to trade between $2,814 and $3,380 this year.
Some institutions hold a positive outlook. A major bank raised its year-end Ethereum target to 7,500 dollars, citing growing on-chain demand and stablecoin activity.
What Could Go Wrong
Even with authorization to hold native crypto, banks still face numerous uncertainties. ETH price volatility can affect reserves designated for fees. Banks also need to carefully balance their holding. If they have too little, that may leave them short during network congestion; if they have too much, they will face still further price swings.
The OCC rules are in fact only feasible for national banks under its authority. State-chartered banks may not have the same freedom, so there can be differing development among different sub-sectors. Robust key management and internal controls will continue to be crucial, as operational errors can introduce cyber and settlement risks.
Conclusion
The updated US bank crypto rules represent a practical step forward. By permitting national banks to hold native tokens for gas payments and testing, the OCC removes a long-standing obstacle. The move supports infrastructure rather than speculation.
As banks take greater control of their blockchain operations, they may build faster, more reliable digital asset services within the regulated financial system.
Glossary of Key Terms
- Gas Fees: Native cryptocurrency used to process operations on a blockchain
- Interpretive Letter 1186: The OCC guidance that allows banks to hold crypto for network fees
- Operational Inventory: Crypto held only for business function, not trading
- GENIUS Act: A US regulatory framework for stablecoins and tokenized deposits
FAQs About US Bank Crypto Rules
1: Do these rules apply to all US banks?
No. They apply only to national banks regulated by the OCC.
2: Can banks now trade crypto freely?
No. They may hold crypto only for fee payments and testing.
3: Does this increase risk for banks?
Yes. Crypto prices can move sharply, so banks must manage their holdings with care.
4: Can banks use these rules to hold crypto for staking or DeFi activities?
No. The guidance only permits holding crypto for operational purposes, such as paying network fees or testing systems. Staking, lending, or other DeFi activities would require separate regulatory approval.
References
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