U.S. Regulators Issue Crypto Safekeeping Guidelines for Banks

Three major U.S. banking regulators—the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve—have issued a joint statement outlining risk-management principles for crypto-asset safekeeping. This move signals a significant expansion in the role of banks in the digital asset space, as it provides clear guidelines for institutions looking to engage in crypto-asset activities.

The statement, issued on July 14, emphasizes the importance of adhering to established risk standards and compliance measures. It clarifies that banks can pursue crypto-asset safekeeping as long as they operate within a robust legal and operational framework. The regulators note that the statement does not create any new supervisory expectations but rather reinforces existing risk-management principles. 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 joint statement comes as part of a broader regulatory agenda to embrace bank-fintech partnerships and expand bank activities involving digital assets. Acting Comptroller Michael J. Hood discussed this agenda on June 3, 2025, highlighting the need for banks to integrate digital asset services while maintaining robust risk management frameworks. The statement serves as a reminder to banks that are currently providing or considering crypto-asset safekeeping services to ensure they are in compliance with existing regulations and risk-management principles.

The regulators' focus on crypto-asset safekeeping is part of a broader effort to integrate digital assets into the traditional banking system. By providing clear guidelines, the regulators aim to foster innovation while mitigating the risks associated with digital assets. The statement underscores the importance of banks implementing effective risk management strategies, including robust controls, monitoring, and reporting mechanisms, to safeguard customer assets and maintain the integrity of the financial system.

The move by the regulators is expected to pave the way for more banks to enter the crypto-asset safekeeping market, potentially leading to increased adoption and integration of digital assets within the banking sector. This development aligns with the broader trend of financial institutions seeking to capitalize on the growing demand for digital asset services, driven by the increasing popularity of cryptocurrencies and other digital assets.

The regulators' statement also highlights the need for banks to stay abreast of evolving regulatory requirements and industry best practices. As the digital asset landscape continues to evolve, banks will need to adapt their risk management strategies to address new challenges and opportunities. The statement serves as a reminder that while the potential benefits of engaging in crypto-asset activities are significant, banks must prioritize compliance and risk management to ensure the safety and soundness of their operations.

In summary, the joint statement by the three major U.S. banking regulators marks a significant step towards the integration of crypto-asset safekeeping services within the traditional banking system. By providing clear guidelines and emphasizing the importance of risk management, the regulators aim to foster innovation while mitigating the risks associated with digital assets. This development is expected to pave the way for more banks to enter the crypto-asset safekeeping market, potentially leading to increased adoption and integration of digital assets within the banking sector.