The prices of cryptocurrencies jumped on Monday night after the US Office of the Currency Controller (OCC) issued a letter approving US banks to use public blockchain networks.
Ether jumped almost 12% with the release of the letter, given Ethereum’s dominance as a protocol for paying a stable currency. Bitcoin also gained 5% and both leading cryptocurrencies almost completely recovered from Sunday night’s losses.
“After a wave of negative regulatory news, investors are pleased to see positive regulatory news enabling stable and public blockchain integration in the traditional banking sector,” said Justin Yashouafar, managing partner of Santa Monica-based Blockhead Capital. .
The letter addressed national banks and federal savings societies participating as nodes in a blockchain and payments made in native digital assets or stable coins being stored or validated.
The OCC’s letter contrasts with a bill introduced in the last Congress session, which required stable issuers to obtain bank charters. That aggressive anti-stablecoin proposal led to hundreds of thousands of dollars in donations being sent to the leading group Coin Coin.
In mid-December, the Treasury Department proposed enhanced KYC (KYC) rules for U.S. cryptocurrency users hoping to transfer their investments from a stock exchange to their own personal wallets.
Yashouafar noted that bitcoin and ether’s positive reactions on Monday were followed by price increases of indigenous signs for other stable support networks, such as Algorand and Solana, which both support the two largest stable currencies: tether (USDT) and Circle’s USDC stablecoin.
Although the prices of ether and algorithm ‘reacted immediately to the news’, Yashouafar pointed out that Solana had not done so yet.
Bitcoin had already reached almost 13% in 2021 at the last check, trading above $ 32,500. Ether trades just below $ 1100, about 25% below its record high of $ 1,448.