3 US Banking Regulators Unite: Crypto Safekeeping Set for Major Bank Expansion
Kevin Helms
Regulation
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U.S. regulators just cleared a critical path for banks to offer crypto asset safekeeping, signaling new momentum for compliant, risk-managed institutional entry into digital finance.
US Banking Regulators Issue Joint Statement on Crypto
A renewed regulatory focus is opening the door for banks to engage with crypto asset safekeeping, provided they meet established risk standards and compliance protocols. The Office of the Comptroller of the Currency (OCC), Federal Reserve Board, and Federal Deposit Insurance Corporation (FDIC) issued a joint statement on July 14, reinforcing that banks can pursue crypto-asset safekeeping as long as they operate within a robust legal and operational framework.
The agencies clarified: “The joint statement discusses existing risk-management principles that apply to crypto-asset safekeeping and reminds banks that provide or are considering providing safekeeping of such assets that they must do so in a safe and sound manner and in compliance with applicable laws and regulations.” Notably, the agencies emphasized continuity, stating:
The statement does not create any new supervisory expectations. The agencies continue to explore ways to provide additional clarity with respect to banks’ engagement in crypto-asset-related activities.
An effective risk assessment, the statement notes, should consider the banking organization’s core financial risks based on its strategic direction and business model, its ability to understand a complex and evolving asset class, its capacity to ensure a strong control environment, and its contingency plans for unexpected challenges.
While caution remains essential, the statement acknowledges an evolving market where banks can participate actively, provided risks are managed. It highlights:
The agencies recognize the evolving nature of the crypto-asset market, including the technology underlying crypto-assets, its benefits, and the importance of a risk management framework to manage the associated risks.
Banks are expected to assess potential exposures, particularly around cryptographic key control, third-party sub-custodians, and emerging asset-specific factors such as forks, airdrops, or smart contracts. The agencies reiterated: “Banks that are providing safekeeping for crypto-assets must do so in a safe and sound manner and in compliance with applicable laws and regulations.”
The inclusion of crypto safekeeping under traditional banking oversight frameworks may encourage more institutions to explore digital asset services. Clear risk guidelines and regulatory flexibility signal a maturing environment that could strengthen crypto’s institutional foothold. Advocates see this clarity as a gateway for mainstream adoption, provided banks invest in technology and governance aligned with industry best practices.
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