Regulatory Agencies Issue Joint Statement on Risk-Management Considerations for Crypto-Asset Safekeeping
Washington D.C. – July 14, 2025 – A significant development for financial institutions engaging with digital assets emerged today as several key regulatory agencies, including the Federal Reserve, issued a joint statement outlining critical risk-management considerations for the safekeeping of crypto-assets. The statement, published by the Federal Reserve and its collaborating bodies, aims to provide clear guidance to banking organizations and foster a consistent approach to managing the unique risks associated with these evolving financial instruments.
The joint statement addresses the increasing interest and involvement of banking organizations in providing safekeeping services for crypto-assets. Recognizing the nascent nature of this market and the inherent complexities, the agencies emphasize the paramount importance of robust risk management frameworks. The core message conveyed is that while institutions may choose to engage in crypto-asset safekeeping, they must do so with a thorough understanding of and preparedness for the associated risks.
A central theme of the statement is the need for a comprehensive risk assessment process. Banking organizations are urged to identify, measure, monitor, and control the various risks that arise from holding and safeguarding crypto-assets on behalf of their customers. These risks are multifaceted and can include, but are not limited to, operational risks, liquidity risks, cybersecurity risks, compliance risks, and legal risks.
Key areas highlighted in the statement include:
- Cybersecurity: Given the digital nature of crypto-assets, robust cybersecurity measures are deemed essential. This encompasses protecting private keys, securing digital wallets, and safeguarding against unauthorized access or theft. Institutions are expected to implement advanced technological solutions and stringent security protocols.
- Operational Resilience: The statement underscores the importance of ensuring the operational resilience of systems and processes involved in crypto-asset safekeeping. This includes having contingency plans in place for disruptions, ensuring data integrity, and maintaining accurate and up-to-date records.
- Custody and Control: Clear procedures for the custody and control of crypto-assets are paramount. This involves understanding how private keys are managed, who has access to them, and the controls in place to prevent loss or compromise. The statement also touches upon the importance of segregation of duties and appropriate internal controls.
- Legal and Regulatory Compliance: Banking organizations are reminded of their obligation to comply with all applicable laws and regulations. This includes adhering to anti-money laundering (AML) and know-your-customer (KYC) requirements, as well as any specific regulations pertaining to digital assets in the jurisdictions where they operate.
- Risk Measurement and Monitoring: The statement emphasizes the need for sophisticated risk measurement and monitoring capabilities. This involves developing appropriate methodologies to assess the value and volatility of crypto-assets, as well as establishing clear metrics for ongoing risk oversight.
- Board and Senior Management Oversight: The responsibility for crypto-asset safekeeping activities ultimately rests with the board of directors and senior management. The agencies stress the importance of active oversight, ensuring that adequate resources are allocated, and that a strong risk culture is embedded throughout the organization.
The joint statement is designed to be a guiding document, offering principles rather than prescriptive rules. This approach allows banking organizations the flexibility to tailor their risk management strategies to their specific business models and the types of crypto-assets they handle. However, the overarching expectation is clear: any institution engaging in crypto-asset safekeeping must demonstrate a commitment to responsible and secure practices.
The issuance of this joint statement reflects a proactive stance by U.S. regulatory bodies in addressing the evolving landscape of financial services. By providing clear guidance, the agencies aim to foster innovation while simultaneously safeguarding the stability of the financial system and protecting consumers. Banking organizations are encouraged to carefully review the statement and integrate its recommendations into their existing risk management frameworks. This initiative signals a continued dialogue between regulators and the industry as the digital asset space matures.
Agencies issue joint statement on risk-management considerations for crypto-asset safekeeping
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