U.S. federal banking regulators—including the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve Board (FRB)—issued revised guidance in April 2025 permitting banks to offer cryptocurrency custody services without prior approval. This policy reversal overturns previous restrictive measures and restores flexibility for financial institutions to engage in digital asset safeguarding, provided they implement stringent risk management protocols and comply with existing regulations.
The joint statement mandates banks to establish robust governance frameworks for cryptographic key management, requiring advanced systems to secure private keys and prevent unauthorized access. Institutions must maintain direct control over assets on their ledgers, conduct thorough oversight of third-party partners, and ensure compliance with anti-money laundering (AML) and sanctions regulations. Regulators emphasized that banks remain liable for sub-custodians' actions and must prepare contingency plans for scenarios like key compromise.
Brian Brooks, former Acting Comptroller of the Currency, endorsed the move, stating: "Providing crypto-asset custody services is a modern form of traditional bank custody activities." The guidance specifically enables banks to hold major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), potentially accelerating institutional investment. Regulators highlighted that this framework balances innovation with customer protection amid market volatility, signaling a broader shift toward regulatory acceptance of digital assets.