Major US financial regulators have jointly affirmed that banks may custody Bitcoin and other cryptocurrencies, provided they implement rigorous consumer protection and risk management protocols. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve stated this new guidance adheres to existing legal standards while addressing security requirements for digital asset services.
Regulators emphasized that financial institutions must establish robust safeguards against theft and loss, specifically highlighting enhanced cybersecurity measures and consumer protections. This clarification aims to resolve previous regulatory uncertainties that discouraged banks from deeper cryptocurrency involvement due to reputational and compliance concerns.
The move establishes clearer legal parameters for institutional crypto custody, potentially accelerating adoption by asset managers and investment firms seeking regulated exposure. By formalizing accountability frameworks, regulators intend to foster innovation while promoting secure integration between traditional banking infrastructure and cryptocurrency markets.