Crypto Custody Gets a Rulebook: OCC, Fed, and FDIC Set New Standards for Banks
- Keyword Financial
- Jul 14
- 4 min read
Introduction
The Office of the Comptroller of the Currency (OCC), Federal Reserve (Fed), and Federal Deposit Insurance Corporation (FDIC) have jointly issued new guidance clarifying how U.S. banks can offer crypto custody services. The agencies emphasized that existing banking regulations for fiduciary duty, custody, and information security already provide a framework for safeguarding digital assets. However, banks must demonstrate robust control over cryptographic keys, manage third-party vendors carefully, and comply with all federal financial crime statutes, including anti-money laundering and counter-terrorism financing rules. The guidance also highlights the need for banks to continuously review the technical aspects of each supported token and ensure staff have the necessary expertise to manage these risks.
This joint statement follows the withdrawal of earlier, more restrictive guidance and joint statements on crypto-asset risks and liquidity risks, which had previously required banks to seek prior approval before engaging in crypto-related activities. Now, banks have greater autonomy to explore permissible crypto activities, such as providing custody services, without undergoing a prior supervisory review process. However, the agencies stress that banks are still responsible for ensuring these activities are conducted in a safe and sound manner, consistent with all applicable laws and regulations. The OCC, for example, reaffirmed that banks may buy and sell assets held in custody at the customer’s direction and may outsource crypto-asset activities to third parties, provided they maintain strong risk management practices.
In summary, while the new guidance removes some procedural hurdles for banks interested in crypto custody, it places greater emphasis on risk management, compliance, and technical expertise. Banks must ensure they can securely control digital assets, properly vet and oversee any sub-custodians or third-party vendors, and maintain rigorous compliance with anti-money laundering and other federal requirements. The agencies indicated that further, more detailed guidance may be issued in the future as the regulatory landscape for digital assets continues to evolve.
