The Federal Reserve and U.S. regulators have confirmed that banks are allowed to custody Bitcoin and other cryptocurrencies. Banks can now offer crypto custody services, holding digital assets securely for customers while complying with existing laws and risk management standards. This marks a regulatory shift enabling traditional banks to enter the crypto space, boosting institutional adoption and trust in digital assets. Banks must control the cryptographic keys and ensure strong operational and compliance measures. This guidance does not create new rules but clarifies existing ones to support safe crypto custody by banks1356.

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