Regulators Push Banks to Strengthen Crypto Safeguards in New Guidance

US banking agencies are urging financial institutions to bolster risk controls if they plan to hold cryptocurrency for clients, according to a joint statement from the Federal Reserve, FDIC, and OCC.

While the guidance doesn’t create new rules, it underscores the need for strong governance around crypto custody, including cybersecurity and key management.

The move reflects regulators’ efforts to provide clarity as banks expand into crypto services.

Recent months have seen the OCC permit banks to trade crypto and the FDIC ease restrictions on crypto-related activities.