US banks can now hold stable currency reserves

[Michar1 1693]

The US OCC has made it clear that banks can offer reserve custody services for stablecoins.

The Office of the Comptroller of the Currency (OCC) is the federal agency responsible for banking supervision in the United States. It has been approached by a national bank asking if it can offer this type of service, that is, the custody of physical money that serves as a reserve for stable currencies. The answer was yes, as long as the laws of the United States are respected.

This is in fact another opening of the OCC, which in recent months had already authorized banks to offer cryptocurrency custody services.

 

 

A bank that wants to offer this type of service must comply with all national laws and regulations and carry out efficient due diligence to ensure that it is aware of the risks associated in this area.

In particular, the bank must pay special attention to anti-money laundering laws, identify customers and verify that they comply with the legal requirements to open checking accounts.

 

With banks, stablecoins become securities

The letter was followed by an "interpretation" by the SEC's FinHub staff. First, it is noted that the OCC refers to stable currencies pegged to fiat currencies, then to the dollar or other foreign currencies. But FinHub goes further and adds:

 

“If a particular digital asset, including one labeled stablecoin, is a security under federal securities laws, it is inherently a determination of facts and circumstances. This determination requires a careful analysis of the nature of the instrument, including the rights it purports to convey and how it is offered and sold ”.

 

 

This means that those who offer services related to cryptocurrencies, and stablecoins in particular, must ask themselves if they comply with the laws of the United States. Therefore, the interpretation invites parties who feel involved to contact FinHub staff to verify that their position is in line with federal law.

Edited November 15, 2020 by Michar1

[Elmerzx 50]

Stablecoins are a very good alternative to back money since their value will not decline and they will always keep oscillating at a fixed price

[Luiiis 31]

That is very good news, having this support in stablecoins gives a lot of confidence

[ramouddz 68]

the crypto holders only ask that, it's a window to even better the future