The Federal Reserve (Fed), FDIC, and OCC have jointly issued a statement clarifying expectations for banks offering cryptocurrency custody services. This guidance addresses operational and risk management aspects. Key Focus Areas The statement highlights the need for robust risk management frameworks. Banks must implement thorough due diligence, understand the novel technologies involved, and comply with existing anti-money laundering (AML) and Bank Secrecy Act (BSA) regulations. Secure storage and segregation of digital assets are also paramount. Implications for the Crypto Industry This regulatory clarity is a significant step toward integrating digital assets into the traditional financial system. Banks can now more confidently explore offering crypto custody, potentially boosting institutional adoption and driving further innovation in the cryptocurrency space. However, rigorous adherence to the guidelines is essential for maintaining the stability and integrity of the financial system. ```