Key Highlights:

• The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency released a statement today emphasizing regulations for the custody of digital assets.
• Historically, U.S. banking regulators have had a tense relationship with the crypto space, yet recent shifts indicate a more accommodating stance toward the industry.

Details:

The Federal Reserve and other U.S. banking officials have reaffirmed the importance of compliance in handling crypto assets. Their latest memo delineates necessary guidelines for banks involved in the safekeeping of customer digital assets and insists that this does not signify a new regulatory agenda.

It specifies that secure management includes controlling the cryptographic keys of the crypto-asset while adhering to relevant legislation and regulations. The agencies also highlighted several operational requirements, such as anti-money laundering measures, risk management, software expertise, and routine 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 memorandum emphasized.

The announcement comes as the U.S. House of Representatives begins its Crypto Week, during which lawmakers are anticipated to consider various cryptocurrency-related proposals aiming at formalizing regulations in the digital asset domain.