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Eleanor Terrett @EleanorTerrett on x 253.9K followers
Created: 2025-07-14 18:09:03 UTC
🚨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 compliance frameworks when holding crypto on behalf of customers.
TLDR:
X. Banks can hold crypto for customers in fiduciary or non-fiduciary roles, but must follow existing laws & risk-management principles.
X. Key risks for banks to consider: •Cybersecurity •Cryptographic key control •Volatile markets •AML/CFT/OFAC compliance •Third-party oversight
X. If a bank holds the keys, it holds the liability. Full control = full responsibility.
An interesting nugget in this section: The guidance says that banks must ensure that only they — not even the customer — can access the keys, which they call the standard for true control.
X. Third-party custody vendors are allowed, but banks remain on the hook for their actions and must do due diligence on them.
Bottom line: The banking regulators will allow institutions to custody crypto, but it will be a highly scrutinized, high-liability practice.
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