The Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) have jointly released a statement to provide greater clarity on how existing regulations apply to banks that offer cryptocurrency custody services for their clients.
The statement, which was issued on Monday, emphasizes that the three major US federal banking agencies are concerned with the safekeeping of cryptocurrencies. The agencies have clarified that the statement does not establish any new supervisory expectations.
The agencies urged banking organizations to evaluate potential risks associated with new crypto-related products and services. Those risks encompass cybersecurity, control over keys, and the management of other sensitive information, as per the joint statement.
“A banking organization that is contemplating offering custody services for crypto-assets should consider the evolving nature of the crypto-asset market, the underlying technology of crypto-assets, and implement a risk governance framework that adapts to the relevant risks,” the agencies advised.
In the past few months, since the inception of President Trump’s administration, several agencies have provided clarifications on their stance toward crypto regulations. For instance, in May, the OCC stated that US banks are allowed to buy and sell crypto assets on their own behalf. The FDIC has also adjusted its position on cryptocurrencies, stating that it will permit financial institutions to engage in crypto activities without prior notification to the agency.
Key agencies have also seen the appointment of crypto-friendly regulators. Last week, Jonathan Gould, a former blockchain executive, was confirmed by the Senate to lead the OCC. Gould had served as the chief legal officer at Bitfury and was previously the senior deputy comptroller and chief counsel at the OCC.
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