On November 18, the OCC issued an interpretive letter, confirming that national banks may pay digital asset network fees — also referred to as “gas fees” — on blockchain networks to facilitate otherwise permissible banking activities. The letter clarified that, rather than relying on third parties for each transaction, a national bank may hold an amount of digital assets as principal on its balance sheet sufficient to pay network fees for transactions the bank anticipates as having a “reasonably foreseeable need.” Banks must maintain related risk management procedures that include controls to keep the amount of digital assets held at a “de minimis” level relative to the bank’s capital. The OCC further confirmed that banks may hold digital assets as principal for the purpose of testing digital asset-related platforms, whether those platforms are developed internally or acquired from third parties.

The letter explained that paying network fees and holding digital assets for this purpose is considered incidental to the business of banking, as it facilitates the delivery and efficiency of permissible banking services such as custody, settlement and payments involving digital assets, among others. The OCC noted these activities are permissible so long as they are conducted in a safe and sound manner, with appropriate risk management, controls, and compliance with applicable law.