The first good news of Crypto Week: The Fed officially announced it, banks have been granted permission.

On the first day of July 14-18, declared as "Crypto Week" by the House of Representatives, the Fed, FDIC, and OCC made a joint statement stating that banks could provide custody services for cryptocurrencies but must comply with existing regulations and risk management rules.
The Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a joint statement indicating that banks may offer custody services for crypto assets and summarizing the considerations they need to keep in mind while doing so.

In the statement, which noted that no new regulation has been established, it was emphasized that banks must comply with existing laws, regulations, and risk management principles while holding cryptocurrencies on behalf of their customers. It was also highlighted that sensitivity should be shown in ensuring the security of cryptographic keys.

According to the explanation, banks should enhance cybersecurity measures to ensure the safety of cryptocurrencies, strengthen their technological infrastructure, and improve the expertise of relevant personnel. It was also noted that effective risk management should be implemented considering the volatility of the cryptocurrency market and rapidly changing technological developments.

It was stated that banks should keep customers' keys to their crypto assets completely under their control and prevent third parties, including the customer, from having unilateral access to the assets. It was emphasized that in the event of loss of keys or unauthorized access, banks would be directly responsible for customer losses.

It was emphasized in the statement that banks may offer the service of storing cryptocurrencies through third parties or sub-custodians, but they are also responsible for the activities of these organizations. It was reminded that comprehensive risk assessments should be conducted before the selection of third parties.

On the other hand, banks are required to strictly comply with the regulations of Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and the Office of Foreign Assets Control (OFAC) in their cryptocurrency custody activities. They were asked to prevent role confusion by providing customer notifications clearly and explicitly, and to define responsibilities in detail with comprehensive customer agreements.

Finally, it was noted that banks need to improve their internal audit processes and controls regarding cryptocurrency custody activities, and that independent external auditors can be consulted when necessary.
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