U.S. banking regulators have released new guidance clarifying the rules around cryptocurrency custody for banks, signaling continued efforts to align traditional financial institutions with the evolving digital asset landscape. In a joint statement, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) emphasized that banks are indeed allowed to offer crypto safekeeping services—but must do so under strict compliance with existing laws and sound risk management practices.
No New Rules, Just Clearer Expectations
The statement doesn’t introduce new regulations. Instead, it reinforces existing guidelines and expectations for how banks should handle custody of digital assets like Bitcoin and Ethereum. The focus is on ensuring safety, accountability, and operational readiness within banking organizations entering the crypto space.
"Given the complexities of crypto-asset safekeeping," the regulators said, bank boards, executives, and staff must possess the necessary understanding of the technology and risks to build proper internal controls. This knowledge is critical to managing crypto custody operations safely and within the bounds of federal banking laws.
Control and Liability: The Keys to Custody
A key component of the guidance centers on control of cryptographic keys—the digital equivalent of asset ownership. When banks provide custody services, they must demonstrate that they alone maintain control over the assets while in safekeeping. That means customers cannot access the crypto while it’s under the bank’s protection.
Even when a bank uses a third-party vendor to handle the actual storage of the digital assets, ultimate responsibility lies with the bank itself. The bank remains liable for any failings or breaches by its chosen vendor, reinforcing the importance of due diligence and oversight in third-party relationships.
Part of a Broader Regulatory Shift
The latest statement comes as regulators continue to refine their approach to banking and digital assets. In February 2025, the FDIC released documentation addressing “crypto debanking” concerns. A month later, it clarified that banks could engage in crypto-related activities without requiring prior agency approval—so long as they remain compliant with established safety and risk standards. The Federal Reserve followed with similar guidance in April, pointing to a broader acceptance of crypto’s role in mainstream finance.
