Banks Engaging in Crypto ‘Safekeeping’ Must Strengthen Risk Controls: US Fed Agencies

Key Points

1. The Federal Reserve, FDIC, and OCC jointly reminded banks to follow risk-management considerations for crypto-asset safekeeping.

2. Banks can provide crypto custody in two forms, but must comply with specific federal regulations (12 CFR 9 or 150) to mitigate risks like data loss and private key mismanagement.

3. The FDIC recently removed 'reputational risk' as a factor in bank supervision, signaling a shift toward more crypto-friendly oversight under the current administration.

4. The GOP is pushing three key crypto bills during 'Crypto Week,' including the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS Act.