U.S. banking regulators, including the Federal Reserve, issued a statement on Monday clarifying how banks should handle the safekeeping of digital assets, emphasizing that this isn’t a new policy shift. The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency joined the Fed in reiterating the importance of managing cryptographic keys in compliance with existing laws.
Clarification, Not Innovation
This latest dispatch from the regulators seeks to demystify the intricacies of safeguarding crypto assets. By focusing on the control of cryptographic keys and ensuring compliance with money-laundering controls, the agencies are reinforcing principles that financial institutions should already know. “This statement discusses how existing laws, regulations, and risk-management principles apply to this activity,” noted the joint memo, underscoring that no new expectations have been set.
According to industry expert Anita Patel, the move is more about reassurance than revelation. “Banks have been navigating these waters for a while now,” she said. “This guidance just reiterates what competent players in the space should already be doing.”
The backdrop to this statement is a history of regulatory oscillation. Under President Joe Biden, the path was fraught with constraints, making it tricky for banks to engage with crypto firms. However, under President Donald Trump, there was a noticeable deregulation trend, allowing a bit more leeway. The current statement seems to straddle a middle ground, reiterating existing laws without introducing new hurdles.
The Timing Couldn’t Be More Interesting
The timing of this announcement is intriguing as it coincides with the U.S. House of Representatives’ Crypto Week. Lawmakers are expected to discuss and potentially approve several crypto bills aimed at solidifying the framework for digital assets in the United States. This dual focus—regulatory clarity on one side and legislative action on the other—indicates a concerted effort to bring some order to the chaotic crypto landscape. As explored in our recent coverage of U.S. Digital Assets Tax Policy Getting Hearing During ‘Crypto Week’, these discussions could significantly impact the future of crypto regulation.
In the words of crypto analyst Mark Rudd, “The regulatory and legislative branches appear to be aligning their efforts, which could mean significant changes on the horizon.” While the regulators’ statement doesn’t introduce anything groundbreaking, it adds a layer of stability to a market often characterized by volatility.
The memo also highlights the importance of risk-management oversight and software audits, essential components in a sector where security breaches can have catastrophic consequences. Banks must ensure they’re not just keeping up with regulations but are also vigilant about the evolving nature of cyber threats.
A Look Back, A Glimpse Forward
Historically, the U.S. approach to crypto regulation has been inconsistent, leaving many in the industry frustrated. The Biden administration initially tightened the screws, only for the Trump administration to loosen them later. This latest statement, however, suggests a more balanced approach, focusing on clarity rather than constraint.
Looking forward, the question remains whether this regulatory clarity will pave the way for more comprehensive legislation. With multiple crypto bills on the table, the coming months could see significant strides in how digital assets are governed in the U.S. For more on the legislative efforts, see our article on how US lawmakers are discussing crypto tax policy amid a push to pass three bills.
Yet, it’s not all smooth sailing. Skepticism remains about whether these efforts will effectively address the rapid innovation and inherent risks in the crypto world. As Rudd puts it, “The real challenge is ensuring that any regulatory framework is adaptable enough to keep pace with technology.”
In essence, while Monday’s statement might not shake the crypto world to its core, it signifies a step towards a more structured and coherent regulatory environment. As the House’s Crypto Week unfolds, all eyes will be on the legislative outcomes and their potential to reshape the landscape.
In the murky waters of digital assets, clarity is precious—and we’re inching closer to it, albeit slowly. The interplay between policy and innovation continues to be a thrilling dance, one where the next steps are eagerly anticipated.
Source
This article is based on: U.S. Banking Regulators Issue Crypto ‘Safekeeping’ Statement, Not Pushing New Policy
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
