Bitcoin
$43,163.20-0.18%
Ethereum
$3,010.36-1.34%
XRP
$0.939082-0.98%
Cardano
$2.18-3.69%
Polkadot
$28.14-3.60%
Stellar
$0.272172-2.30%
Dogecoin
$0.202757-1.85%
Chainlink
$23.67-3.23%
Uniswap
$22.90-5.31%
Polygon
$1.11-3.33%
Algorand
$1.71+1.03%
Cosmos
$37.67-7.06%
Litecoin
$149.15-1.75%
Bitcoin Cash
$500.53-2.06%
Wrapped Bitcoin
$43,187.05-0.19%
The Graph
$0.679721-0.07%
Filecoin
$61.36+4.55%
Tron
$0.087825-0.64%
Ethereum Classic
$46.46-2.06%
Tezos
$6.24-9.15%
Aave
$284.53-3.13%
Monero
$241.36+3.53%
NEO
$38.41-1.37%
EOS
$3.94-1.95%
IOTA
$1.17-2.40%
BitTorrent
$0.003164-1.41%
Bitcoin SV
$127.23-2.58%
Waves
$23.61-0.72%
Maker
$2,314.80-2.22%
Dash
$158.02-3.03%
Decentraland
$0.670517-6.15%
Decred
$108.47-4.86%
ICON
$1.54-6.56%
NEM
$0.144936-1.53%
OmiseGO
$9.08+1.58%
Zcash
$107.18-3.62%
Paxos Standard
$1.01+0.79%
Yearn Finance
$29,560.56-3.58%
Ren
$1.06+3.01%
NuCypher
$0.273566+0.15%
Qtum
$9.47-1.44%
Bitcoin Gold
$51.07-1.78%
Basic Attention Token
$0.627000-3.24%
Fetch.ai
$0.773422-6.67%
0x
$0.882742-2.18%
Kava.io
$5.87+2.33%
Bancor
$3.48-1.32%
Band Protocol
$7.25-2.15%
Siacoin
$0.014532-3.97%
Nano
$4.31-5.74%
Loopring
$0.373004+0.60%
Storj
$1.05-4.02%
Numeraire
$40.69-1.97%
Civic
$0.423896-3.59%
Lisk
$2.82+0.90%
Orchid
$0.314196-1.56%
PAX Gold
$1,758.44-0.06%
Enzyme
$144.63-0.45%
Augur
$20.50-3.34%
Aragon
$4.47-2.14%
district0x
$0.146954-0.75%
Kyber Network
$1.43-2.35%
SingularDTV
$0.001215+4.47%
Tether
$1.00-0.03%
USD Coin
$1.00-0.01%
Dai
$1.00-0.02%
Breaking news: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case

Crypto Markets Jump on OCC Approval for Banks to Use Blockchains

The price of bitcoin and native tokens for other stablecoin-supporting blockchains jumped after the OCC approved banks to use public blockchains.

Jan 5, 2021 at 1:51 a.m. UTC
Updated Sep 14, 2021 at 10:51 a.m. UTC

Cryptocurrency prices jumped Monday evening after the U.S. Office of the Comptroller of the Currency (OCC) issued a letter approving U.S. banks to use public blockchain networks.

Ether jumped nearly 12% on the letter's release, given Ethereum's dominance as a stablecoin payment settlement protocol, and bitcoin gained 5%. Both leading cryptocurrencies almost fully retraced Sunday evening's losses.

"After a flurry of negative regulatory news, investors are pleased to see positive regulatory news allowing stablecoin and public blockchain integration into the traditional banking sector," said Justin Yashouafar, managing partner at Santa Monica-based Blockhead Capital.

The letter addressed national banks and federal savings associations participating as nodes on a blockchain and storing or validating payments made in native digital assets or stablecoins. 

The OCC's letter stands in contrast to a bill introduced in the last U.S. Congress session that would have required stablecoin issuers to obtain bank charters. That aggressively anti-stablecoin proposal resulted in hundreds of thousands of dollars in donations sent to leading cryptocurrency advocacy group Coin Center.

In mid-December the Treasury Department proposed enhanced know-your-customer (KYC) rules on U.S. cryptocurrency users that want to transfer their holdings from an exchange to their own personal wallets.

Yashouafar noted the positive reactions of bitcoin and ether Monday were followed by price jumps from native tokens for other stablecoin-supporting networks, such as Algorand and Solana, both of which support the two largest stablecoins: tether (USDT) and Circle's USDC stablecoin.

Yet, while the prices of ether and algorand "reacted immediately to the news," Yashouafar pointed out that Solana's had not.

Bitcoin has gained nearly 13% already in 2021 at last check, trading hands above $32,500. Ether is trading just below $1,100, roughly 25% below its record high of $1,448.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...