The Office of the Comptroller of the Currency (OCC), which is responsible for regulating US banks, has stated that banks may use stablecoins and blockchain to make bank payments.

in Tabuk Released today, the Office of the Comptroller of the Currency clarified that stablecoins and blockchain can be used to make bank payments, as long as they comply with the law and sound banking practices. The statement reads as follows:

The National Bank or the Federal Savings Association may verify, store and record digital payment transactions by acting as a node on INVN [مصطلح INVN يشير لشبكة التحقق من العقد المستقلة].

Likewise, the Bank may use “INVN” and related stablecoins to carry out other permitted payment activities.

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Mr. Brian Brooks, Supervisor of the Office of the Comptroller of the Year (OCC), and a former executive of Coinbase, indicated in a press release that this step is related to taking advantage of the cryptocurrency industry to keep pace with the current pace, and added:

While governments in other countries have established real-time payment systems, the United States has adopted in our innovation sector to offer real-time payment technologies.

The statement makes clear that banks, as financial intermediaries, face competition to move funds faster.

From the OCC’s point of view, INVN, like blockchain and other distributed network technologies, is a way to move money efficiently and quickly.

The letter states that banks may issue fixed digital currencies. The letter also states:

Banks have long used cashier’s checks, travellers’ checks, and other bearer financial instruments as a means of facilitating cashless payments.

Jeremy Allaire, co-founder and CEO of Circle, which operates the USDC stablecoin, reacted and tweeted about the latest OCC post, saying:

This is a big win for crypto and stablecoins.

He added:

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We are on the path of carrying out all major economic activities on the blockchain.

It is great to see such supportive forward thinking from the largest regulator of national banks in the USA.

1/ Major news from the US Treasury (OCC, the largest US banking regulator)Tweet embed), with new directives allowing US banks to use public blockchains and dollar-denominated currencies as a settlement infrastructure in the US financial system.

– Jeremy Allaire January 4, 2021

Although OCC has taken a strong pro-crypto stance when it comes to financial innovation, the message and statement presented comes amid regulatory uncertainty over the US crypto industry.

In mid-December, a separate US Treasury office, the Financial Crimes Prosecution Office (FinCEN), proposed rules requiring financial services firms, including banks and cryptocurrency exchanges, to record and report cryptocurrency transactions to private wallets.

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While the proposed FinCEN rules did not conflict with the OCC rules issued today, they do indicate a general atmosphere of regulatory uncertainty.

As these recently announced regulations and regulations indicate a move by regulators to control the terms and laws of the crypto market in the United States of America.

As a reminder, at the end of last December, the US Securities and Exchange Commission (SEC) announced a lawsuit against Ripple, accusing it of selling unregistered securities, and the case continues so far, with an important date awaiting in late February.

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