🚨NEW: The “big three” banking regulators — @USOCC, @federalreserve & @FDICgov — just issued joint guidance on how banks should approach custodying crypto assets. 🏦
The guidance doesn’t create new rules, but reaffirms that banks must apply existing risk management, legal, and compliance frameworks when holding crypto on behalf of customers.
TLDR:
1. Banks can hold crypto for customers in fiduciary or non-fiduciary roles, but must follow existing laws & risk-management principles.
2. Key risks for banks to consider:
•Cybersecurity
•Cryptographic key control
•Volatile markets
•AML/CFT/OFAC compliance
•Third-party oversight
3. If a bank holds the keys, it holds the liability. Full control = full responsibility.
An interesting nugget in this section: The guidance says that banks must ensure that only they — not even the customer — can access the keys, which they call the standard for true control.
4. Third-party custody vendors are allowed, but banks remain on the hook for their actions and must do due diligence on them.
Bottom line: The banking regulators will allow institutions to custody crypto, but it will be a highly scrutinized, high-liability practice.
🚨NEW: The @SECGov and @Ripple have jointly requested a Manhattan District court to dissolve the injunction in their ongoing case and release the $125 million civil penalty held in escrow.
They’re proposing that $50 million be paid to the SEC, with the remaining funds returned to Ripple. This motion is the latest in the broader effort to settle the case, end the pending appeals, and avoid further legal proceedings between the two parties.
Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry.
With the SEC dropping its appeal, Ripple is now in the driver's seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate this victory.
CONCLUSION:
#Ripple will pay $125m.
This includes injunctive relief, prohibiting #Ripple from "violating Section 5 and from conducting an unregistered offering of Institutional Sales of XRP" again.
Updates in Q2 – namely progress w/ the XRPL EVM sidechain & Axelar for interoperability, Archax expected to bring hundreds of millions of $ of tokenized RWA onto the XRPL and prep for future Oracles and MPT releases – are making me very excited about what’s coming in Q3 + Q4.
BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOM! BREAKING: SEC Dropped Charges Against Ripple (XRP) Founders Brad Garlinghouse and Chris Larsen
https://t.co/pmPHf6g15Z