US Regulators Approve Bank Custody for Bitcoin and Crypto Assets
The post US Regulators Approve Bank Custody for Bitcoin and Crypto Assets appeared on BitcoinEthereumNews.com.
Key Insights: Banks cleared to custody Bitcoin and crypto under existing legal and risk frameworks Joint statement stresses cybersecurity, compliance, and control over cryptographic keys Sub-custodian use is permitted but banks remain fully accountable US federal banking regulators have formally allowed banks to offer custody services for Bitcoin and other crypto-assets. The joint decision from the Federal Reserve, OCC, and FDIC outlines compliance obligations rather than new rules. It marks a significant expansion in regulated crypto access for financial institutions. Banks Must Comply With Risk and Security Standards The new guidance confirms that banks can offer safekeeping of crypto in fiduciary or non-fiduciary capacities under current laws. According to the statement, banks must meet all requirements under 12 CFR 9 or 150, state law, and applicable fiduciary provisions. They must also maintain strong cybersecurity, operational readiness, and internal controls. 🚨NEW: The “big three” banking regulators — @USOCC, @federalreserve & @FDICgov — just issued joint guidance on how banks should approach custodying crypto assets. 🏦 The guidance doesn’t create new rules, but reaffirms that banks must apply existing risk management, legal, and… pic.twitter.com/HW3AEIaVeT — Eleanor Terrett (@EleanorTerrett) July 14, 2025 The agencies emphasized that control over customers’ cryptographic keys is central to custody responsibilities. Banks must implement effective key management, monitor unauthorized transfers, and secure infrastructure. Anti-money laundering (AML), counter-financing of terrorism (CFT), and OFAC sanctions rules apply in full. Before offering services, banks must conduct a full risk review of crypto custody operations. This includes evaluating asset types, technologies used, and legal obligations. Every bank must also ensure compliance with the Bank Secrecy Act (BSA) and internal control standards. Sub-Custodian Use Permitted but Accountability Remains The statement allows banks to work with third-party sub-custodians but states they remain fully responsible. It reads, “Subject to the terms and conditions in the…
Filed under: News - @ July 15, 2025 1:27 am