U.S. Banking Regulators Double Down on Crypto Safekeeping—But Is It Just Lip Service?

U.S. banking regulators just dropped their long-awaited crypto safekeeping guidance—and surprise, it's not the crackdown some feared. Instead of new rules, they're reiterating existing standards for holding digital assets. But with the SEC and CFTC still at war over jurisdiction, don't expect clarity anytime soon.

Key Takeaways:

- No new policy: The joint statement simply reinforces current custody requirements for banks dabbling in crypto.

- Regulatory limbo continues: The guidance does nothing to resolve the turf war between financial watchdogs.

- Banks remain cautious: Most institutions will likely stay on the sidelines until clearer rules emerge—after all, why risk it when traditional banking still prints money?

The bottom line? This 'guidance' changes little. Until regulators get their act together, crypto's institutional adoption will keep moving at bureaucratic speed—glacial, with occasional papercuts.