U.S. Banks Get Greenlight for Crypto Custody

The U.S. economy has entered a new phase with a historic regulatory endorsement of cryptocurrency services by banks—coinciding with Bitcoin’s surge in value, reports Ainvest. Long skeptical of digital assets, the Biden administration now signals a major change in stance.

A unified statement from the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve outlines new clarity for how banks can engage with cryptocurrencies. For the first time, banking institutions are officially allowed to offer custody and management services for digital assets alongside traditional holdings.

This shift legitimizes crypto custody as a standard financial service. Under the updated guidelines, banks may hold cryptocurrencies in fiduciary or non-fiduciary capacities—each requiring robust risk management and clear legal compliance. Fiduciary arrangements bring more stringent federal oversight under 12 CFR 9 or 150, while non-fiduciary services still demand secure systems to protect clients’ digital assets from loss, hacks, or system failures.

Regulators stress that institutions must take full responsibility for assets in their care, including private keys, even when using third-party service providers. The burden of accountability stays with the bank.

This move doesn’t introduce new supervisory expectations but rather standardizes the current regulatory framework. It grants more autonomy to banks engaging with crypto, reflecting a more mature and open approach. These changes—some initiated under the prior administration—are already being implemented, as seen in recent rulings where banks no longer need prior agency approval to begin crypto-related operations.

Ultimately, this regulatory alignment is a green light for mainstream financial institutions to step into the crypto world, potentially accelerating institutional adoption of Bitcoin and other digital assets.