Breaking: Fed, OCC & FDIC Unveil Game-Changing Crypto Custody Rules for Banks
Regulators finally crack the vault open—banks get a green light to hold digital assets for clients. Here's what changes.
The Custody Revolution Starts Now
After years of regulatory limbo, the holy trinity of US banking oversight (Fed/OCC/FDIC) dropped joint guidelines letting banks safeguard crypto. No more gray area—just clear(ish) rules for institutions dipping into digital assets.
Why This Matters
Banks can now officially compete with crypto-native custodians. Expect a gold rush of 'blockchain solutions' from legacy players—half of which will be rebranded Excel spreadsheets.
The Fine Print
Guidelines mandate robust risk management (read: more compliance jobs) and segregation of assets (so your Bitcoin won't get 'accidentally' lent out). FDIC insurance still doesn't cover crypto—surprise.
Wall Street gets another bite at the crypto apple while retail investors keep playing regulatory roulette. Some things never change.
Federal agencies clarify crypto safekeeping services for banks
Federal agencies Fed, OCC, and FDIC issued a statement on Monday, addressing what banks should consider before safekeeping customers' cryptocurrency holdings. Safekeeping for banks is to hold assets on behalf of a customer securely.
The statement clarifies that existing regulations and risk management principles still apply to crypto custody services without introducing any new supervisory expectations for banks. Banks are expected to evaluate potential risks before providing crypto-asset safekeeping services, just as they WOULD with any new product, service, or activity.
The agencies emphasized that properly safeguarding crypto assets means controlling the cryptographic keys tied to those assets in a way that aligns with existing laws and regulations.
The regulators also mentioned that bank officers, board members, and employees should have a good grasp of crypto-asset safekeeping services to enable them to establish robust operational systems. Other regulatory factors that require consideration include money-laundering controls, risk-management oversight, and regular audits.
The MOVE comes as Federal agencies have shown leniency towards the crypto industry since President Trump's administration began. It also follows rising interest among US banks seeking to integrate cryptocurrencies into their payment systems. Major banks such as Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo are actively exploring stablecoin initiatives.
The OCC clarified in May that national banks can handle crypto transactions and outsource services as long as third-party risks are properly managed. Likewise, the Fed withdrew its 2022 guidance that discouraged bank involvement in crypto and stablecoin activities by requiring prior notice before participation.
The US Senate also approved Jonathan Gould as the Comptroller of the Currency on July 11 to replace Rodney Hood, who served as acting Comptroller. Prior to his confirmation, Gould had a strong background in crypto, previously working at prominent firms such as Bitfury and BlackRock.
The move also aligns with crypto regulatory progress as House lawmakers kicked off Crypto Week, where three crypto regulatory bills are set for deliberation. These include the GENIUS bill, the CLARITY bill, and the Anti-CBDC Surveillance State bill.
