🚨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 compliance frameworks when holding crypto on behalf of customers. TLDR: 1. Banks can hold crypto for customers in fiduciary or non-fiduciary roles, but must follow existing laws & risk-management principles. 2. Key risks for banks to consider: •Cybersecurity •Cryptographic key control •Volatile markets •AML/CFT/OFAC compliance •Third-party oversight 3. If a bank holds the keys, it holds the liability. Full control = full responsibility. An interesting nugget in this section: The guidance says that banks must ensure that only they — not even the customer — can access the keys, which they call the standard for true control. 4. Third-party custody vendors are allowed, but banks remain on the hook for their actions and must do due diligence on them. Bottom line: The banking regulators will allow institutions to custody crypto, but it will be a highly scrutinized, high-liability practice.