US banking regulators have jointly published a formal framework detailing risks and compliance requirements for financial institutions offering cryptocurrency custody services.
The Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Federal Reserve unveiled the framework titled ‘Crypto-Asset Safekeeping by Banking Organizations’. It mandates that banks adhering to stringent anti-money laundering (AML) and know-your-customer (KYC) protocols when safeguarding digital assets for clients.
Simultaneously, cryptocurrency firms including Ripple and Circle are actively seeking federal banking charters. This trend signals a broader drive towards deeper integration between the crypto sector and the traditional financial system.
Regulators are relaxing restrictions, with the FDIC’s anticipated regulatory reset in 2025 projected to further lower obstacles for banks wishing to provide custody solutions. The guidance specifically underscores the necessity for banks to implement specialized audit programs, emphasizing rigorous scrutiny of key management systems and third-party custody arrangements.