US banking regulators have issued a statement clarifying the rules around cryptocurrency safekeeping by banks.
General Provisions on Crypto Asset Custody
The Federal Reserve, FDIC, and OCC stated that the joint statement does not establish any new rules regarding banks' involvement in crypto custody.
Banks' Responsibility for Custody
Regulators confirmed that banks are allowed to hold crypto assets for customers, but they hold full responsibility for their custody. Banks must demonstrate that no other party can access the assets.
Changes in Regulatory Approaches
The regulators' statement comes amid a shift in regulatory approaches towards banking and cryptocurrency, suggesting increased openness to crypto activities.
Overall, the new clarifications emphasize the increasing openness of regulators towards crypto assets and the necessity for banks to ensure legal compliance and accountability.
