15-7-2025 – U.S. banking regulators have authorized banks to custody bitcoin and other crypto assets, marking a pivotal shift in integrating digital currencies into traditional finance. The Federal Reserve, OCC, and FDIC issued a joint statement clarifying that banks can hold crypto assets in fiduciary or non-fiduciary capacities under existing legal frameworks.
The guidance emphasizes strict compliance with cybersecurity, anti-money laundering, and consumer protection standards. Banks must maintain full control over assets, prohibiting clients from accessing private keys, and are required to conduct rigorous audits and risk assessments to ensure operational security. This development follows a series of regulatory clarifications in 2025, including the OCC’s March and May guidance, which rescinded prior restrictions requiring banks to seek approval for crypto activities.
🚨NEW: The “big three” banking regulators — @USOCC, @federalreserve & @FDICgov — just issued joint guidance on how banks should approach custodying crypto assets. 🏦
The guidance doesn’t create new rules, but reaffirms that banks must apply existing risk management, legal, and… pic.twitter.com/HW3AEIaVeT
— Eleanor Terrett (@EleanorTerrett) July 14, 2025
The shift aligns with a broader pro-crypto stance under the current administration, aiming to foster innovation while maintaining financial stability. The move is expected to boost institutional confidence, potentially driving greater adoption of digital assets by mainstream financial institutions. However, banks face stringent requirements, including robust internal controls and third-party oversight if outsourcing custody services. The regulators’ focus on consumer protection and risk management underscores the complexities of crypto custody, ensuring banks bear full liability for safeguarded assets.
This framework aims to bridge traditional finance with the crypto ecosystem securely. Analysts anticipate this could spur competitive shifts, with banks enhancing technological capabilities to meet crypto demand. Monitor how major banks implement custody services and whether this accelerates broader crypto integration in U.S. financial markets.
