Banks are provided with the requirements for safely storing digital assets, as detailed by the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.
In a significant move, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have issued a statement outlining their expectations for crypto-asset safekeeping by banks. The statement, published yesterday, underscores the need for banks to establish robust risk management practices and cybersecurity measures when dealing with digital assets.
The announcement highlights several key points for banks to consider:
1. **Custody of Crypto-Assets**: Banks may hold crypto-assets in both fiduciary and non-fiduciary capacities. Fiduciary capacities involve higher standards of care, while non-fiduciary capacities are governed by client contracts and general risk management standards.
2. **Risk Assessment**: Banks are advised to conduct a thorough risk assessment before offering crypto-asset safekeeping services. This includes assessing core financial risks, understanding the asset class, ensuring a strong control environment, and preparing contingency plans.
3. **Control Over Cryptographic Keys**: Banks must maintain exclusive control over the cryptographic keys associated with the crypto-assets to ensure secure custody.
4. **Cybersecurity and Due Diligence**: Banks are required to implement robust cybersecurity measures and conduct thorough due diligence on any third-party custodians they may use.
5. **Compliance with Existing Laws and Regulations**: Banks must provide crypto-asset safekeeping services in a "safe and sound manner" and in compliance with applicable laws and regulations. This includes adhering to standard custodial risk management principles tailored to the unique attributes of crypto-assets.
It is important to note that the statement does not establish new regulations or supervisory expectations but rather clarifies how existing laws and risk management principles apply to crypto-asset safekeeping.
The move comes amid broader regulatory shifts since President Trump's second administration began. In a related development, SAB 121, a rule effective under the Biden administration, which previously prevented banks from providing crypto custody, was rescinded four days after Trump's 2025 inauguration.
The role of the OCC, one of the three regulators responsible for the statement, has been filled by Jonathan Gould, who previously worked at crypto firm Bitfury. His appointment is seen as a significant step in bridging the gap between traditional finance and the emerging digital asset sector.
Statistics from the Basel Committee have shown a marked increase in bank participation in crypto custody. Nonexistent in 2023, custody had apparently risen to almost $16 billion (€13.57 billion) by mid 2024.
The statement emphasizes the need for banks to establish adequate operational capacity and appropriate controls to conduct crypto-asset safekeeping in a safe and sound manner and in compliance with applicable laws and regulations.
[1] Federal Reserve, FDIC, and OCC Statement on Crypto-Asset Safekeeping (2025) [2] Bank Secrecy Act and Anti-Money Laundering Risks in Virtual Currencies (2019) [3] OCC Bulletin 2021-35: Tailoring the Bank Secrecy Act Expectations for Community Banks (2021) [4] OCC Bulletin 2022-13: Supervision and Regulation of Crypto-Asset Activities (2022) [5] OCC Bulletin 2023-01: Supervision and Regulation of Crypto-Asset Activities (2023)
- The Federal Reserve, FDIC, and OCC's statement on crypto-asset safekeeping highlights the requirement for banks to establish control over the cryptographic keys associated with the crypto-assets they hold.
- In the statement, banks are advised to conduct a comprehensive risk assessment before offering crypto-asset safekeeping services, including assessing core financial risks and ensuring a strong control environment.
- As part of the risk assessment, banks are encouraged to understand the asset class, prepare contingency plans, and implement robust cybersecurity measures to secure crypto-assets within their custody.
- Banks are expected to maintain compliance with existing laws and regulations when providing crypto-asset safekeeping services, adhering to standard custodial risk management principles tailored to the unique characteristics of crypto-assets.
These sentences provide a summary of the key points outlined in the statement from the Federal Reserve, FDIC, and OCC regarding the expectations for crypto-asset safekeeping by banks, focusing on the need for banks to manage risk, secure cryptographic keys, and comply with regulations when dealing with digital assets.
