Regulatory requirements such as AML, CFT, and OFAC sanctions remain applicable, emphasizing the importance of compliance in crypto safekeeping activities.

The regulators reiterated that the guidance does not impose new supervisory expectations but applies current legal and regulatory frameworks to crypto assets, emphasizing strong cybersecurity, operational expertise, and full legal compliance.

U.S. banking regulators have issued new guidance allowing banks to custody cryptocurrencies, emphasizing adherence to existing risk management, cybersecurity, and legal compliance standards without creating new rules.

This guidance, issued on July 14, 2025, by the OCC, FDIC, and Federal Reserve, marks a significant step in clarifying the regulatory framework for banks engaging in crypto custody, facilitating their entry into this lucrative sector.

Banks may offer crypto safekeeping in fiduciary or nonfiduciary capacities, but must comply with relevant laws such as 12 CFR 9 or 150, and conduct thorough due diligence on sub-custodians' cryptographic key-management solutions.

Safekeeping involves controlling customers' cryptographic keys and protecting against risks like cyberattacks, key loss, and unauthorized transfers, with rigorous security measures and audits required.

Key banks like US Bancorp, BNY Mellon, and Societe Generale are leading the charge, with US Bancorp focusing on stablecoins and cybersecurity, and Societe Generale launching a compliant stablecoin to demonstrate regulatory alignment.

The relationship between U.S. regulators and the digital asset sector has shifted over time, with recent moves under the current administration easing previous constraints, encouraging more bank participation.

The crypto custody market is expected to grow substantially, with average fees of 1-2% annually—much higher than traditional custody fees—making it an attractive opportunity for banks and investors.

Investors are advised to be selective and monitor regulatory developments, as the crypto custody landscape is evolving rapidly and offers significant growth potential.

To capitalize on this growth, investors should focus on mid-cap banks with strong fintech partnerships, robust cybersecurity, and exposure to stablecoins.

While the SEC has not issued the same guidance, it has endorsed similar custody provisions earlier this year, indicating broader acceptance of crypto custody in traditional finance.