The US banking regulatory agency offers a blueprint for cryptocurrency custody by lending institutions.

The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have issued a joint statement guiding banks on how to provide cryptocurrency custody services to customers without violating regulations. U.S. banking regulators have released a white paper on how lending institutions can hold cryptocurrency. This is the latest move by regulatory agencies under the Trump administration to balance how traditional lending institutions should participate in the digital asset business. The statement mentions that banks considering providing custody services for cryptocurrencies should take into account the constantly changing nature of the cryptocurrency market, including the technology behind the assets, and must implement a risk management framework capable of appropriately addressing related risks. Previously, in April, regulatory agencies withdrew previous guidance on risks in the cryptocurrency industry, allowing lending institutions more freedom to offer products and services to customers engaged in digital asset trading. At that time, the Federal Reserve also revoked the directive requiring banks to notify in advance of cryptocurrency activities in 2022. The agency stated that instead, their cryptocurrency activities will be monitored through regular regulatory procedures.