In an interpretive letter dated Jan. 4, the OCC clarified that banks can connect to blockchain networks as validator nodes and use stablecoins to facilitate payment transactions for customers. The federal banking regulator added that the use of INVNs in the federal banking system could also improve the efficiency, effectiveness, and stability of payment activities and enable real-time payments that other countries already enjoy. The OCC, however, warned of the risks associated with INVN-related activities, citing that these new technologies entail sufficient technological expertise to ensure safe risk management.
Huge win for the crypto space
Global financial technology firm Circle’s CEO Jeremy Allaire said that OCC’s clarification on the use of stablecoins and blockchain networks for payment activities is a big win for the crypto space. Allaire said that the new guidance could make leading stablecoins such as the USDC become a mainstream payment medium. He said that this could also make the United States a leader in blockchain adoption.
