Fed Clarifies Crypto Custody Rules as Congress Begins 'Crypto Week'

The Federal Reserve, along with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), issued a joint statement Monday reaffirming how banks should manage the custody of crypto assets. The clarification comes as lawmakers kick off "Crypto Week" in Congress, expected to bring major digital asset bills to the floor.

The agencies emphasized that the memo doesn’t introduce new regulations but reinforces how existing laws apply to crypto safekeeping. Key requirements include secure control of cryptographic keys tied to customer assets, full compliance with anti-money laundering (AML) laws, and robust risk management procedures. Banks are also expected to maintain adequate technical knowledge and conduct regular software audits.

“This statement discusses how existing laws, regulations, and risk-management principles apply to this activity, and does not create any new supervisory expectations,” the agencies said.

While the Biden administration had previously taken a cautious stance on crypto engagement by financial institutions, the Trump administration appears more open. The latest memo signals a return to regulatory clarity without imposing fresh constraints.

This move aligns with increasing political momentum in Washington to build a clear regulatory framework for digital assets. During Crypto Week, lawmakers are expected to vote on several crypto-related bills, including the GENIUS Act on stablecoins and the Digital Asset Market Clarity Act, which could reshape how crypto firms and banks interact.

The renewed guidance gives banks firmer ground for entering crypto custody services, a growing demand area as Bitcoin surges past $120,000 and institutional interest expands. By reaffirming compliance expectations, U.S. regulators are signaling that digital asset custody can be part of traditional banking—if done right.