U.S. federal regulators have revised guidance allowing banks to participate more freely in the crypto custody segment.
Guidance Update
In April 2025, federal regulators, including the OCC, FDIC, and FRB, issued revised guidance permitting banks to engage in crypto custody and related services. This aims to restore prior flexibility for banks while emphasizing risk management.
Market Impact
The changes could have a notable impact on financial markets, as banks can now hold crypto assets like BTC and ETH. This facilitates greater involvement in the crypto economy and could stimulate market liquidity.
Reactions and Prospects
Increased institutional investment in digital assets is anticipated as a result of these changes. Brian Brooks, former Acting Comptroller of the Currency, noted: "Providing crypto-asset custody services is a modern form of traditional bank custody activities."
The revision of guidelines by U.S. federal regulators may significantly change banks' approach to cryptocurrencies, increasing institutional investors' interest.
