U.S. regulators have approved a new framework governing how financial institutions can custody digital assets on behalf of clients, a move industry participants have long called for.
The updated rules clarify capital requirements and operational standards for custodians, potentially opening the door for more banks and asset managers to offer crypto custody services.
Legal experts say the framework represents a meaningful step toward integrating digital assets into the traditional financial system, though some have noted that compliance costs could be significant for smaller firms.
The announcement was met with a positive reaction from industry groups, who view regulatory clarity as a prerequisite for broader institutional adoption of digital assets.