U.S. Regulators Approve Bank Custody of Crypto Assets

On July 14, 2025, the U.S. OCC, Federal Reserve, and FDIC issued together a set of instructions to banks. This fresh guideline will enable banks to custody crypto with the existing risk management regulations. The advice does not present any new regulations but supports current legislations.

The ruling is a tentative merging of the $2.1 trillion cryptos market with conventional finance. This is a noteworthy move since there has been reluctance by regulators on crypto. Strict requirements that should be adhered to by banks refer to the possession of cryptographic keys by the banks alone.

Key Changes in Crypto Custody Rules

The custodying of crypto assets has since become the task of the banks as opposed to self-custody. Essentiality of banks working with cryptographic keys is highlighted in an attempt to eliminate the risk of cybersecurity. According to a study conducted by NIST, 70 percent of crypto thefts were associated with the failure to manage keys.

🚨NEW: The “big three” banking regulators — @USOCC, @federalreserve & @FDICgov — just issued joint guidance on how banks should approach custodying crypto assets. 🏦

The guidance doesn’t create new rules, but reaffirms that banks must apply existing risk management, legal, and… pic.twitter.com/HW3AEIaVeT

— Eleanor Terrett (@EleanorTerrett) July 14, 2025

The trend is associated with the larger U.S. policy change, as seen in the March 2025 executive order issued by Trump. The order also created Strategic Bitcoin Reserve to indicate an increased insight into the role of crypto assets as strategic investments. This advice criticizes former accounts of unequivocal regulation antagonism.

A Strategic Pivot Toward Crypto

The interagency regulation confirms that the U.S. government is in a changing position regarding cryptocurrency. Although it can be said that previous regulatory initiatives were more of a dampening measure, this document indicates that there is an open approach to the inclusion of crypto in the financial realm. With the regulation of crypto assets around the current regulations, banks will be able to reduce exposures as they enter this booming market.