U.S. banking regulators jointly issue guidance on cryptocurrency custody services

btccSquare News: Federal banking regulators have taken an important step in clarifying rules for financial institutions' involvement in cryptocurrency custody. The Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation jointly issued guidelines, emphasizing that existing risk management frameworks are equally applicable to digital asset protection. This statement marks a significant shift in regulatory attitude, moving from strict skepticism to cautious acceptance. Regulators require banks to apply the same rigorous standards when evaluating cryptocurrency custody services as they would for traditional assets, particularly regarding cryptographic key control. This development comes at a time of continued growth in institutional demand for regulated crypto services. Notably, the guidelines do not mention new capital requirements or special restrictions, indicating that regulators recognize the maturity of custody solutions. The guidance effectively lowers the entry barrier for banks considering offering crypto services, potentially accelerating mainstream adoption.