US regulators lift restrictions on banks, accelerating the integration of $260 billion in stablecoins.

Bank of America can finally "work with cash"!

What's the meaning?

On November 18, Eastern Time, the Office of the Comptroller of the Currency (OCC) issued Interpretation Letter No. 1186, formally confirming and giving the green light to federal banks: allowing banks to hold cryptocurrencies on their balance sheets specifically for paying gas fees for blockchain networks.

Don't be misled by the seemingly minor technical detail of "payment gas." This marks the first time in US financial history that regulators have explicitly permitted banks to hold public blockchain native tokens for "on-chain operational needs."

This is not just a policy easing; it's a "chain-based pass" that Wall Street has gained.

The "green light" for blockchain integration has been turned on.

It's important to understand that prior to this, there was a clear red line between US banks and cryptocurrencies: banks could hold Bitcoin for their clients, but they were never allowed to directly hold any public blockchain tokens with their own assets.

This has led to an extremely absurd vicious cycle. For example, JPMorgan Chase wanted to test on-chain payments, but because it couldn't legally hold even a small amount of ETH to pay gas fees, the entire system became impossible to operate.

The OCC's new regulations directly and forcefully cut off this deadlock. This means:

1. For the first time, banks are permitted to "hold cash for operational needs."

It's no longer just about custodian assets for clients; banks can now hold crypto assets themselves as needed for their business operations.

2. Permitted scenarios, specifically targeting "on-chain business testing"

In other words, the on-chain payments, on-chain settlements, and on-chain deposits that banks are currently promoting can all enter the "testing phase".

3. Regulatory attitudes are undergoing a quantifiable change.

Especially after the passage of the GENIUS Act, US regulators are collectively shifting towards "building on-chain payments".

Who will benefit?

1. Reshaping of Asset Attributes: Banks Begin Holding "Operational" Crypto Assets

Banks have officially opened the door to compliance for "non-stablecoin crypto assets" on their balance sheets, marking a fundamental shift from "contraband" to "means of production."

2. US-based stablecoins are poised for a window of favorable policy support.

Both USDC and PYUSD will vie for cooperation opportunities in "bank blockchainization".

The United States' "National Crypto Strategy"

This shift by the OCC is by no means accidental; it is a tactical execution of a coordinated effort between legislation and regulation.

As early as November 3, President Trump had already set the tone: "The top priority is to ensure that the United States becomes a global leader in the cryptocurrency field." The OCC's latest action is precisely the implementation of this national strategy.

1. A combination of legislation and regulation

• Congressional legislation: The GENIUS Act has taken effect; the CLARITY Act is expected to be introduced by the end of the year, clarifying the regulatory boundaries between the SEC and CFTC and ending years of uncertainty.

• Regulatory follow-up: The OCC allows banks to pay gas fees for buying cryptocurrencies; the Treasury Department and the IRS released new guidelines for cryptocurrency exchange trading products on November 10, providing a clear compliance path for holding digital assets.

• Core Strategy: Project Crypto, spearheaded by SEC Chairman Atkins, aims to deeply integrate the securities market with blockchain and exclude most crypto assets from securities laws.

2. Capital repatriation and accelerated institutionalization

In a recent report, Wall Street brokerage Bernstein pointed out that this comprehensive regulatory framework is propelling the United States to become a global crypto hub:

• Capital Scale: US crypto ETFs have reached $160 billion in assets, with institutional investors accounting for approximately one-quarter. US entities hold 73% of the total value of global cryptocurrency assets.

• Market Structure: The total supply of stablecoins has exceeded $260 billion. More importantly, according to Artemis data, driven by regulatory legislation, the annual scale of stablecoin payments for goods and services is expected to reach $122 billion, a surge of 70% since the beginning of the year, proving that stablecoins have shifted from a speculative tool to a mainstream payment tool.

• Mainstream adoption: Coinbase and Robinhood have been included in the S&P 500 index, marking the formal entry of crypto assets into the mainstream financial landscape in the United States.

If previous regulations were like putting the crypto industry in a cage, then this letter from the OCC is the key to unlock that cage.

This marks the first time public blockchain tokens have received compliant recognition: they have been formally included in bank balance sheets, becoming "operational necessities" on Wall Street. This leap in status for public blockchain tokens will catalyze the rapid development of the US stablecoin industry and on-chain financial infrastructure.

The whistle has been blown for the next round of global on-chain finance development!