Fed, FDIC & OCC Issue Crypto Asset Custody Guidance
The Federal Reserve, FDIC and OCC have jointly clarified the legal framework for crypto asset custody by banks, emphasizing that digital assets remain uninsured bank deposits and must comply with existing risk management, capital, liquidity and cybersecurity requirements. Banks can offer crypto asset custody services under current law—distinguishing trust and non-trust roles—by implementing robust private key management, wallet strategies, due diligence on third-party custodians, and adhering to KYC, AML, tax and consumer protection rules. The guidance provides regulatory certainty without creating new rules, paving the way for broader institutional adoption and boosting market confidence.
Bullish
The interagency guidance removes legal ambiguities around crypto asset custody, encouraging banks to launch custody services without new regulatory burdens. In the short term, this clarity can boost institutional inflows and trading activity as banking institutions integrate custody offerings, improving market liquidity. Over the long term, established risk management and compliance standards will strengthen infrastructure, foster broader institutional adoption and enhance market confidence. Historically, such regulatory clarity has correlated with price gains for major crypto assets, suggesting a bullish outlook.