US federal banking agencies have granted approval for financial institutions to custody cryptocurrency assets under established regulatory frameworks. The Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) issued a joint statement permitting banks to hold Bitcoin and other digital assets in compliance with existing regulations, including provisions under 12 CFR Part 9 and 12 CFR Part 150.
The guidance mandates strict adherence to anti-money laundering (AML), counter-terrorist financing (CFT), and Office of Foreign Assets Control (OFAC) sanctions regulations. Banks must maintain alignment with Bank Secrecy Act (BSA) requirements throughout their custody operations.
Regulators emphasized the necessity for robust cybersecurity protocols and comprehensive risk management strategies when handling digital assets. Institutions utilizing third-party sub-custodians must implement clear accountability measures and contingency plans to mitigate potential failures or insolvencies.
This regulatory decision enables traditional banks to integrate digital asset services, potentially accelerating mainstream cryptocurrency adoption while upholding rigorous compliance standards for investor protection and financial stability.