WASHINGTON—National banks may pay “gas fees” on blockchain networks as part of permissible banking activities, the Office of the Comptroller of the Currency said in a newly released interpretive letter.
In the letter, the OCC said banks may also hold limited amounts of crypto-assets on their balance sheets as principal when needed to cover network fees that arise from “otherwise permissible activities.” The name of the requesting bank was redacted from the document.
Gas fees—transaction charges paid to validators to process activity on a blockchain—are required for functions such as transferring customer assets or supporting custody services. For networks like Ethereum, banks must hold a small amount of the native asset, such as Ether, to pay these fees. The letter also noted banks may rely on third-party “gas station” services that allow clients to fund fee payments without directly holding crypto-assets.
Bank Was Seeking Confirmation
The OCC issued the guidance in response to a bank seeking confirmation that paying network fees is allowed as an activity incidental to the business of banking, and that holding the necessary crypto-assets to facilitate such payments is permissible. The agency affirmed both points.
The regulator also concluded that national banks may hold crypto-assets as principal when needed to test “otherwise permissible” crypto-related platforms, whether developed internally or purchased from a vendor.
Assessment Planned
According to the letter, the bank told the OCC it plans to conduct a full risk and compliance assessment before moving forward. That review is intended to ensure the activities fit within the institution’s broader business plans and are managed in line with established risk standards.
The OCC said the bank must demonstrate it can conduct the activities “in a safe and sound manner” and meet all supervisory expectations governing crypto-asset operations.
