Custodied digital assets need not be carried as a liability or backed by capital
What the document says“(1) to include digital assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping activities; or (2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 4(a)(1)(A)”
Subsection (c). Three agencies are barred from requiring either thing of a depository institution, national bank, Federal or State credit union, trust company or affiliate: carrying custodied digital assets it does not own as a liability, or holding regulatory capital against those assets. The capital bar has an exception for what is necessary to mitigate operational risks inherent in custody or safekeeping, as determined by the appropriate Federal banking agency, the National Credit Union Administration, a State bank supervisor or a State credit union supervisor.
What the document actually says“(1) to include digital assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping activities; or (2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 4(a)(1)(A)”
A bank may hold digital assets that belong to someone else. No agency may make it list them as a debt of its own. No agency may make it set aside capital against them.
Capital is money a firm keeps back to take a loss. There is one carve out here. A watchdog may ask for capital against the risk of running the service itself.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.