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Fed, FDIC, OCC Clarify How Banks Can Handle Your Crypto
In a joint statement, the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have clarified how banks can provide crypto custody services to their customers. The move aims to provide clarity on existing regulations, allowing banks to start offering these services without requiring new policies.
According to the statement, banks must implement strong risk controls to manage the risks associated with holding cryptocurrencies. This includes having clear plans in place for cybersecurity, protecting private keys, and keeping sensitive data secure. These expectations apply before any crypto safekeeping services are offered to customers.
The regulatory agencies emphasized that banks should adapt their internal controls as the crypto market evolves. This means they must maintain risk frameworks that match those already in place for traditional financial products. The statement emphasizes that a banking organization considering providing crypto-asset safekeeping should take into account the rapidly changing nature of the cryptocurrency market.
In recent months, each agency has taken steps to allow greater crypto use by banks. In May, the OCC stated that banks are allowed to purchase and sell digital assets for their own portfolios. The FDIC followed this announcement by stating that banks do not need to notify the agency before starting crypto services. These changes have effectively made it easier for banks to offer crypto-related products such as trading, custody, and settlement.
The joint statement is seen as a step towards clearer and more consistent regulations. This clarity will enable banks to establish partnerships with crypto businesses, leading to further innovation in the industry.
Source: cryptopotato.com
