U.S. Regulators Define Crypto Custody Rules for Banks

U.S. banking regulators have clarified how financial institutions should handle cryptocurrency custody. The Federal Reserve, FDIC, and OCC jointly outlined how existing rules apply when banks safeguard digital assets for clients. No new regulations were introduced—instead, agencies emphasized that current frameworks already cover crypto services, requiring banks to treat them with the same oversight as traditional financial products.

Security and governance take center stage. Institutions must prioritize robust safeguards from the outset, including private key management, client data protection, and cyber threat mitigation. Regulators highlighted the need for adaptable governance systems to keep pace with crypto's rapid technological evolution.

Market risks remain a key concern. Banks were urged to thoroughly evaluate operational, legal, and technological challenges before offering digital asset services. This guidance forms part of broader efforts to balance innovation with financial stability in the growing digital economy.