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  • The Office of the Comptroller of the Currency (OCC) has published a letter issuing stablecoin regulation guidelines.
  • Guidance is reserved only for stablecoins held in hosted wallets controlled by a trusted third party.

In a significant step for crypto adoption, the Office of the Comptroller of the Currency (OCC) has published a letter, approving national banks’ and federal savings associations’ authority to hold “reserves” on behalf of customers who issue stablecoins.

Acting Comptroller of the Currency Brian P. Brooks announced:

National banks and federal savings associations currently engage in stablecoin-related activities involving billions of dollars each day. This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner.

In the letter, the OCC clarifies several questions regarding the application of stablecoin-related bank activities. The letter notes that the guidance is reserved only for stablecoins held in hosted wallets controlled by a trusted third party. Unhosted wallets that were influenced by the individual user are not included in the guidelines.

The letter notes:

The due diligence process should facilitate an understanding of the risks of cryptocurrency and include a review for compliance with applicable laws and regulations, including those related to the Bank Secrecy Act (BSA) and anti-money laundering. 

The reserve account could be structured as either deposit of the stablecoin issuer or as deposits of the individual stablecoin holder.