US Banking Regulators Issue Joint Guidance on Crypto Custody Services

Three major US financial regulators—the Office of the Comptroller of the Currency, Federal Reserve, and FDIC—have clarified how banks should approach cryptocurrency custody under existing banking rules. The guidance emphasizes that holding digital assets for clients constitutes "safekeeping" rather than creating new regulatory obligations.

Central to the framework is the requirement that banks maintain exclusive control over private keys, ensuring neither customers nor third parties can unilaterally MOVE assets. Institutions must evaluate their key management systems, wallet infrastructure, and contingency plans while ensuring staff possess necessary technical expertise.

The volatile nature of crypto assets and rapid technological evolution demand particular attention to capital allocation and operational staffing. Regulators expect continuous monitoring of supported tokens' underlying technology, including software dependencies and blockchain architecture, to identify potential vulnerabilities.