US Regulators Confirm Banks’ Right to Custody Crypto with Key Restrictions
Federal regulators have granted US banks the authority to custody cryptocurrencies, marking a significant milestone for institutional adoption. The joint statement from the OCC, FDIC, and Federal Reserve comes with strict consumer protection measures, including a ban on clients holding private keys.
This regulatory shift reflects growing acceptance within federal agencies, though implementation challenges remain. The OCC had previously signaled this MOVE in May, while the FDIC recently revised debanking rules to address crypto-related abuses.
The Federal Reserve's participation is particularly notable given its recent political tensions. This coordinated action suggests a maturing regulatory framework for digital assets in traditional finance.
