Federal Reserve, FDIC and OCC explain the coding nursery rules for banks

American banking organizations issued a statement clarifying the rules related to the preservation of Cryptocurrency, or custody, by banking organizations.

The Board of Governors in the Federal Reserve System, the Federal Deposit Insurance Corporation and the currency observer office, noticed in them press release The joint statement does not specify any new rules related to the participation of banks in the coding reservation.

Instead, the Federal, FDIC and OCC reserves have repeated the current regulatory directives of banks, focusing on the laws in force. The statement also highlights expectations on the principles of risk management of banks that provide custody services for cryptocurrencies such as Bitcoin (BTC) and ETHEREUM (ETH).

Banks need “knowledge” about encryption

The agencies confirmed that banks are allowed to obtain encryption assets for their customers, either with a credit capacity or unlimited. However, banking organizations must consider many major rules when providing these services.

“Given the complications of preserving encrypted assets, the Board of Directors of the Banking Organization, employees and employees must have the knowledge and understanding required for services to save encrypted services to create sufficient operational capacity and appropriate controls to conduct the activity in a safe and sound way and are compatible with the laws and regulations in force.”

Bank keys and encryption switches

While the bank can hold encryption assets on behalf of the customer, the agencies have confirmed again that the responsibility for maintaining safety falls with the bank.

As such, banks have to take full control of assets, in this case, keys. According to the guidelines, the banking organization “proof” must be reasonably “that no other party, including the customer, can reach assets while still under the bank’s saving.

Banks are also allowed to use third -party custodians. However, the bank concerned is responsible and will be responsible for the actions of the third party.

The Federal, FDIC and OCC reserve statement comes amid a transformation that can be observed in the bank’s organizational approach and encryption in the United States

In the past, FDIC and OCC have issued major guidelines for banks because they allow more participation in banking services providers in the encryption industry.

For example, FDIC released documents related to Crypto Debanking in February 2025, and in March, banks can engage in encryption activities without the need for prior approval request from the agency. The Federal Reserve also issued similar instructions in April.