The OCC and SEC have released new guidance detailing all operational requirements for US national banks to reserve funds when dealing with a stablecoin issuer.
On Monday, September 21, the Office of the Comptroller of the United States (OCC) issued a regulatory signal to all federally registered banks in the United States to hold reserve funds for stablecoins. The OCC and SEC have jointly published a guide to stablecoins, which provides a detailed overview of stablecoin transactions under US law.
Read our guide to stablecoinsif you don't understand what I'm talking about 🙂
Until now, stablecoin operators have used US banks to search for fiat money. However, there was a lack of regulatory clarity regarding transactions. The new guidance gives US banks a clear understanding of stablecoin transactions. In a press release, Acting Comptroller Brian P. Brooks сказал:
“National banks and federal savings associations currently engage in billions of dollars in stablecoin activities every day. This view provides more regulatory confidence for banks within the federal banking system to provide services to these customers in a secure and reliable manner. ”
The letter also notes that stablecoin operators can place assets in a reserve account with national banks. This should give banks confidence and confidence that the issuer has sufficient assets to "support a stablecoin in situations where there is a hosted wallet." The bank will check on a daily basis that the reserve account balances are always equal to or in excess of the outstanding stablecoins of the issuer. OCC also added:
“[We] are not currently applying for the authority to support stablecoin transactions using off-budget wallets. In addition, this letter concerns only the use of stablecoin, backed at a 1: 1 ratio by the common fiat currency. "
Working with stablecoins in the USA
In the letter, referring to dollar-backed stablecoins, the OCC detailed how banks should handle the reserves. Under the leadership of the acting head of the OCC, Brian Brooks, the regulator initiated a series of measures to bridge the gap between the crypto space and the existing financial system.
The OCC also recently allowed nationalized banks to offer custody services for cryptocurrencies. In addition, he also issued a national payment charter for fintech companies and other crypto exchanges. The OCC's approach to cryptocurrencies shows that the US is working on some major regulatory changes to accommodate cryptocurrencies.
Several stakeholders and industry analysts welcomed the move by regulators. In a final note, a letter from OCC asks banks to exercise due diligence and other risk factors before joining any stablecoin issuer. It states here:
“A bank must consider all relevant risk factors, including liquidity risk and compliance risk, before entering into any agreement or relationship with a stablecoin issuer. The due diligence process should promote understanding of the risks associated with cryptocurrency and include checking for compliance with applicable laws and regulations, including those related to the Bank Secrecy Act (BSA) and anti-money laundering. ”