US Fed Regulators Warn Banks: Strengthen Crypto Custody Risk Controls

Krutika Adani

Tighten Crypto Custody Risk Practices

The Fed, FDIC, and OCC issued a joint statement telling banks to follow existing laws and risk controls when offering crypto ‘safekeeping’ services.

2 Ways to Custody Crypto

Banks can hold crypto either in a fiduciary role (as a trustee) or a non-fiduciary one. Both require strict compliance with federal and state laws.

Stronger Controls Against Cyber Risks Needed

Banks must implement safeguards to protect customer crypto assets from hacking, data loss, or mismanagement of private keys.

A Pivot From Past Crypto Restrictions

Recent regulatory shifts under President Trump have removed “reputational risk” from supervision, enabling more crypto engagement for banks.

Crypto Week Begins on Capitol Hill

The timing of the Fed’s statement aligns with the GOP-led “Crypto Week,” where key bills like the CLARITY Act and Anti-CBDC Act are set to shape crypto’s future.

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