Federal Reserve, OCC, FDIC Outline Expectations for Bank Digital Asset Custody
In a major shift toward integrating traditional banking with digital assets, U.S. federal banking regulators have issued a formal statement clarifying expectations for banks offering crypto-asset custody services.
Released jointly by the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), the statement highlights operational and compliance expectations—but emphasizes that it does not create new supervisory rules, only reiterates existing obligations and risk considerations.
Background: Trump-Era Regulatory Shift
This latest guidance comes amid broader regulatory reform under President Trump’s second administration, which has actively reversed prior restrictions on banks engaging in digital asset services.
One of the most notable reversals was the rescission of SEC Staff Accounting Bulletin (SAB) 121, just four days after Trump’s January 2025 inauguration. SAB 121, implemented during the Biden administration, had essentially prohibited banks from offering crypto custody services by imposing harsh capital treatment.
As a result, bank participation in digital asset custody was virtually nonexistent in 2023, according to data from the Basel Committee on Banking Supervision. However, by mid-2024, that figure surged to nearly $16 billion, signaling rapid institutional re-engagement with crypto safekeeping.
Core Focus: Risk Management and Staff Expertise
The statement places strong emphasis on staff competency and internal controls:
“Given the complexities of crypto-asset safekeeping, a banking organization’s board, officers, and employees should have the requisite knowledge and understanding… to establish adequate operational capacity and appropriate controls,” the regulators wrote.
Key areas of concern include:
- Management of cryptographic keys
- Third-party technology reliance
- Compliance with anti-money laundering (AML) obligations
- Adherence to the Bank Secrecy Act (BSA)
Even when custody is provided directly, the regulators note that most banks depend on third-party technology vendors, elevating operational and cybersecurity risks.
New OCC Head Has Crypto Background
In a related development, the Senate last week confirmed Jonathan Gould as the new head of the OCC, one of the three agencies issuing this guidance. Gould previously held a position at crypto mining and infrastructure firm Bitfury, alongside former acting Comptroller Brian Brooks, known for his crypto-forward stance during the Trump administration’s first term.
This unified federal statement signals a significant policy realignment, reinforcing the Trump administration’s intent to legitimize digital assets within the U.S. banking framework while ensuring regulators remain focused on safety, soundness, and compliance in a rapidly evolving financial ecosystem.
@ Newshounds News™
Source: Ledger Insights
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China Settles $855 Billion in Trade With BRICS Countries in First Half of 2025
China has recorded a massive $855 billion in trade with BRICS member countries during the first half of 2025, signaling the continued realignment of global trade dynamics away from traditional Western dominance.
According to Lu Daliang, Director of the Statistics and Analysis Department at the General Administration of Customs, this total—equivalent to 6.11 trillion yuan—reflects a 3.9% year-on-year increase compared to the same period in 2024. Daliang confirmed the figures during a press conference, emphasizing the growing strength of the BRICS economic alliance.
BRICS Gaining Momentum in Cross-Border Trade
This surge in trade reinforces the broader strategy of BRICS to foster intra-bloc economic cooperation and reduce reliance on Western financial systems. In the first six months of 2025 alone, BRICS and partner countries accounted for 28% of China’s total foreign trade, showcasing a significant shift toward South-South collaboration.
China’s $855 billion trade with BRICS members was primarily driven by:
- Chemicals and metallurgical products
- Electronic components and industry goods
- Petrochemical equipment
- Metalworking machines
- Agricultural equipment, including cotton harvesters and combines
This diverse portfolio of industrial trade underscores BRICS’ growing independence and mutual interdependence in key supply chains.
China-SCO Digital Trade Platform: A Challenge to the USD?
In a parallel development, China proposed a new digital trading platform to enhance commerce with member states of the Shanghai Cooperation Organization (SCO). The proposal, announced during the SCO Global Mayors Dialogue held in Tianjin, hints at the possibility of bypassing the U.S. dollar in future transactions.
If implemented, such a platform could significantly impact the USD’s global dominance in international settlements, further supporting ongoing de-dollarization trends within the BRICS and SCO alliances.
Conclusion
As geopolitical and economic alliances deepen between China and its BRICS counterparts, the global financial order continues to evolve. With $855 billion in trade already settled in the first half of 2025, China’s strategy reflects a clear pivot toward a multipolar, non-dollar-dominated global trade structure—a development that will have lasting implications for global markets, monetary policy, and cross-border commerce.
@ Newshounds News™
Source: Watcher.Guru
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