Sec. 411. Treatment of custody activities by banking institutions
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/bill/118/hr/4763/rfs/section-411·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The appropriate Federal banking agency (as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )), the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require, or take supervisory action that would cause, a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate (as such term is defined under section 2 of the Bank Holding Company Act of 1956) thereof— to include assets held in custody or safekeeping, or the assets associated with a cryptographic key held in custody or safekeeping, as a liability on such institution’s financial statement or balance sheet, except that cash held for a third party by such institution that is commingled with the general assets of such institution may be reflected as a liability on a financial statement or balance sheet; to hold additional regulatory capital against assets in custody or safekeeping, or the assets associated with a cryptographic key held in custody or safekeeping, except as necessary to mitigate against operational risks inherent with the custody or safekeeping services, as determined by— the appropriate Federal banking agency; the National Credit Union Administration (in the case of a credit union); a State bank supervisor (as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )); or a State credit union supervisor (as defined under section 6003 of the Anti-Money Laundering Act of 2020); to recognize a liability for any obligations related to activities or services performed for digital assets with respect to which such institution does not have beneficial ownership if that liability would exceed the expense recognized in the income statement as a result of the corresponding obligation.
In this section: The term depository institution has the meaning given that term under section 3 of the Federal Deposit Insurance Act. The terms Federal credit union and State credit union have the meaning given those terms, respectively, under section 101 of the Federal Credit Union Act.
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Sec. 411
Treatment of custody activities by banking institutions
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