The three major federal banking regulators in the United States—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC)—have issued a joint statement outlining how existing rules will be implemented regarding banks offering cryptocurrency custody services on behalf of their customers.
Overview of Crypto Custody Services
In the joint statement, the regulators detailed how the existing legal framework and risk management principles would apply to crypto asset custody activities, while emphasizing that no new auditing standards were introduced.
Bank Responsibilities and Risks
Banks offering crypto asset custody services will be responsible for keeping digital assets secure on behalf of customers. In this process, they will need to prioritize issues such as the protection of digital keys, cybersecurity risks, and operational controls. The statement noted that storing crypto assets requires significant resources and expertise.
Trends in Crypto Asset Regulation
Since Donald Trump's re-inauguration, there has been a noticeable increase in statements and positions regarding crypto regulations. Specifically, in May, the OCC announced that US banks could trade crypto assets on their own behalf. The subsequent appointment of pro-crypto figures to key positions is also drawing attention.
Thus, the joint statement by federal regulators highlights the importance of adhering to existing rules and the necessity for comprehensive risk assessments in providing banking services in the cryptocurrency sector.
