Ethereum News Today: Banks Now Can Hold Crypto for Fees, Signaling Blockchain's Integration into Traditional Finance

The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidance allowing banks to hold cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to pay for blockchain network fees, marking a significant regulatory shift in the financial sector. The move, outlined in Interpretive Letter 1186 on November 18, 2025, clarifies that national banks may maintain crypto assets on their balance sheets to cover operational costs tied to blockchain transactions. This development comes as financial institutions increasingly seek direct access to blockchain networks for settlement and custody services.

The guidance specifically addresses Ethereum's requirement for ETH to pay gas fees, a necessity for validating transactions on the network. The OCC emphasized that holding crypto for this purpose is permissible as long as it aligns with existing banking regulations and is conducted in a "safe and sound" manner. The agency warned that failing to hold necessary tokens could lead to operational inefficiencies, including transaction delays and increased costs from intermediaries. For example, a bank providing crypto custody services would need ETH to execute transfers on Ethereum, a process now streamlined under the new rules.

The OCC's decision builds on broader regulatory adjustments under the Trump administration, which has sought to reduce barriers for banks engaging with digital assets. In May, the agency previously allowed banks to handle crypto transactions on behalf of customers and outsource related activities to third parties.

The latest guidance expands this framework by permitting banks to hold crypto as principal for testing blockchain platforms and paying network fees. This aligns with the recently passed GENIUS Act, which established a regulatory framework for stablecoin transactions and mandates that banks comply with applicable laws when managing crypto assets.

The move has been hailed as a step toward integrating blockchain technology into traditional finance. Paul Barron, a crypto analyst, noted that banks no longer need third-party services for routine gas fees, improving operational efficiency and reducing reliance on intermediaries. The OCC also highlighted that permissible activities must relate to functions already authorized under existing law, such as settlement processes and blockchain-integrated banking services. This ensures that banks remain within regulatory boundaries while exploring new use cases.

Critics, however, have raised concerns about the risks of holding volatile assets like crypto. The OCC acknowledged these challenges, stating that banks must implement robust risk management practices to address asset price fluctuations and operational complexities. The guidance also underscores that crypto holdings for network fees must be proportionate to a bank's capital and operational needs, preventing excessive exposure.

The regulatory shift follows ongoing efforts to define the role of traditional institutions in the crypto ecosystem. Lawmakers are now advancing a digital asset market structure bill, seen as the most significant crypto-related legislation under consideration. While the GENIUS Act's implementation remains pending due to regulatory delays, The OCC's guidance provides immediate clarity for banks seeking to navigate the evolving landscape.