US Regulators May Allow Banks to Custody Bitcoin Under Existing Compliance Frameworks

Key Points

1. The Federal Reserve, OCC, and FDIC issued a joint statement allowing banks to custody crypto assets under existing regulations like 12 CFR 9 and 12 CFR 150.

2. Banks must adhere to AML, CFT, and OFAC sanctions regulations, aligning with the Bank Secrecy Act (BSA) requirements.

3. The guidance highlights the need for robust cybersecurity protocols and risk management when handling digital assets.

4. Banks engaging sub-custodians must ensure accountability and contingency plans for third-party failures or insolvency.

5. This regulatory approval enables banks to integrate digital asset services, potentially expanding mainstream crypto adoption while maintaining strict compliance standards.