Recently, U.S. regulators announced a significant step in the regulation of the crypto industry, permitting traditional banks to provide crypto-asset custody services.
New Regulation for Banks
In a newly released statement titled 'Crypto-Asset Safekeeping by Banking Organizations,' regulators clarified that banks may offer custody services in both fiduciary and non-fiduciary roles. Banks must adhere to existing risk management frameworks and comply with applicable laws.
Conditions for Crypto Custody
The agencies emphasized that custody services could include the secure holding of digital assets and managing them similarly to traditional fiduciary holdings such as wills, trusts, or investment accounts.
Impact on the Crypto Market
This regulatory clarity arrives as Bitcoin continues its rise, now trading above $120,000. Bitcoin has increased over 11% in the past week, with a trading volume exceeding $182 billion and a market cap approaching $2.4 trillion. Analysts speculate that this development could usher in a wave of bank-backed crypto services across the United States.
The launch of crypto custody services by banks could significantly change the market and increase institutional investment in cryptocurrency.
