The OCC Permits Banks to Hold Crypto Assets in Order to Pay "Network Fees"
The Office of the Comptroller of the Currency (the "OCC") has held for the first time that national banks may hold crypto assets as principal on their balance sheet in order to pay reasonably expected amounts of "network fees" or "gas fees" on blockchain networks.
On November 18, 2025, the OCC issued Interpretive Letter #1186 to confirm that national banks may permissibly hold, as principal, sufficient crypto assets to pay blockchain network fees, in anticipation of paying such fees.
The OCC blended legal and practical reasons to support its updated guidance: Certain crypto-asset activities are already deemed permissible, and under 12 U.S.C. 24 (Seventh), national banks may exercise incidental powers to carry on the business of banking. Activities are considered incidental when they are convenient or useful, such that the activity: (i) facilitates products, (ii) enhances sales ability, (iii) improves efficiency, or (iv) enables a bank to use required capacity to avoid economic waste.
According to the Interpretive Letter, banks have several reasons to hold crypto assets as principal: (i) to pay "network" or "gas" fees, (ii) to receive the same fees when serving as a validator node on a blockchain network, (iii) to facilitate blockchain transactions, and (iv) to test a crypto-asset platform for customers. Although the OCC recognizes that crypto assets pose risks (through volatility and cyber threats), the agency considers such uses appropriately incidental to the business of banking. Additionally, when banks hold crypto assets themselves, as opposed to contracting with third parties for such payments, they reduce operational and counterparty risk. The OCC also considers holding crypto assets to be convenient and useful because such practices:
- Reduce time delays related to acquiring other crypto assets needed for specific network fees;
- Improve efficiencies for banking activities;
- Avoid exposure of bank customers to credit risk from third parties;
- Reduce costs for banks by internalizing payment processing;
- Allow banks to engage in permissible activities, such as serving as a validator node; and
- Ensure overall safety and soundness when testing crypto asset-related platforms by allowing banks to directly assess the platform's operation.
The OCC presented its guidance as a step forward in the long path of banking innovation: Banks are using "new ways of conducting the very old business of banking." In particular, the OCC highlighted that banks have the authority to hold, as principal, stores of foreign exchange to facilitate customer business and provide incidental related services to customers.
National banks interested in providing crypto-asset services should note that the Interpretive Letter was not issued by the OCC on its own initiative, but as a response to a request from a bank that sought the authority to pay network fees, and explained to the OCC how its risk and compliance processes would support safe and sound operations.
