The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have released new instructions for banks on managing crypto assets. This update aims to enhance banks' access to the crypto market.
New Instructions from Regulatory Agencies
Regulators issued a joint statement detailing how traditional lenders should engage with crypto assets. These instructions replace previous restrictions that made it difficult for banks to enter the crypto space.
Requirements for Banks' Internal Systems
Regulators emphasized that for safe custody of crypto assets, banks must control cryptographic keys. Before launching custody services, banks are expected to assess risks and adequately prepare their personnel.
Banks' Liability for Third-Party Providers
Banks may engage third-party firms for crypto custody but remain fully responsible for all actions taken by sub-custodians. Regulators stressed the importance of checking the technology and security of these third parties.
These new guidelines aim to improve risk management in the crypto sector for banks, potentially fostering greater adoption of crypto assets within the traditional financial industry.
