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US OCC Releases Interpretive Letter on Blockchain Settlement

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US OCC Releases Interpretive Letter on Blockchain Settlement

The Office of the Comptroller of the Currency (OCC) has become an important regulator under former Coinbase Chief Legal Officer Brian Brooks. They released Interpretive Letter 1174, about Independent Node Verification Networks (INVN or Blockchains) and Stablecoins.

The Letter states: “National banks and Federal savings associations (collectively referred to as “banks”) may use new technologies, including INVNs and related stablecoins, to perform bank-permissible functions, such as payment activities.”

Chairman Brooks may not be officially confirmed to the office under the new US government led by Joe Biden, but this letter setts an important precedent. It defines both INVN’s and stablecoins, while outlining the current banking system’s need for innovation.

With different regulatory offices trying to regulate the blockchain industry, the OCC is trying to take an important role saying, “A bank should consult with OCC supervisors, as appropriate, prior to engaging in these payment activities. The OCC will review these activities as part of its ordinary supervisory processes.”

Many on Twitter weighed in:

 

 

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