The Federal Reserve, FDIC, and OCC issued a joint statement outlining guidelines for banks regarding cryptocurrency custody. These recommendations focus on risk management and data security.
General Requirements for Crypto Custody
Federal regulators stated that banks must develop clear plans for cybersecurity, protect private keys, and secure sensitive data. These requirements must be met before banks offer crypto custody services.
Adapting Bank Risks to the Crypto Market
Regulators want banks to adjust their internal control systems in light of changes in the cryptocurrency market. They emphasized that banks considering offering custody for crypto-assets should take into account the evolving nature of the market.
New Flexibility for Crypto Activities in Banks
In recent months, each agency has taken steps to increase cryptocurrency activities in banks. For instance, the OCC allowed banks to buy and sell digital assets for their portfolios, and the FDIC stated that banks do not need to notify the agency before commencing crypto services.
As the need for closer collaboration between banks and regulators grows, interest in digital assets continues to rise, potentially leading to clearer and more consistent regulations in the field.
