U.S. Regulators Define Crypto Custody Rules for Banks

U.S. banking regulators have issued fresh clarity on how financial institutions should handle cryptocurrency custody.

The Federal Reserve, FDIC, and OCC jointly released a statement outlining how current rules apply when banks safeguard digital assets on behalf of clients.

Rather than introducing new rules, the agencies reiterated that existing regulations already cover crypto-related services. They emphasized that banks must treat crypto custody like any other financial product—with proper oversight and risk controls.

Focus on security and governance

Institutions looking to offer crypto safekeeping must prioritize security from the start. That includes managing private keys, protecting sensitive client data, and guarding against cyber threats.

Officials stressed the importance of building governance systems that adapt to crypto’s fast-changing landscape. Technologies evolve quickly in this space, and risk frameworks need to keep pace.

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Crypto market risks remain top concern

Regulators urged banks to understand the unique challenges posed by digital assets. They called on institutions to evaluate operational, legal, and technological risks before launching crypto services.

The joint statement adds to a growing list of regulatory efforts aiming to balance innovation with financial stability in the digital economy.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.