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Uniform Accounting for Custodial Assets in Financial Institutions

New rules aim to standardize how banks and other financial institutions account for assets they hold for clients, including digital assets. This prevents institutions from treating these assets as their own liabilities, potentially impacting their financial stability and the availability of custodial services for citizens.
Key points
Banks and financial institutions will not be required to list client assets (e.g., money, securities, cryptocurrencies) as their own liabilities on their balance sheets.
These institutions will not need to hold additional regulatory capital against assets held in custody for clients, unless necessary to mitigate operational risks.
The changes aim to ensure financial institutions can provide asset custody services without unnecessary regulatory burdens, potentially fostering the growth of custodial services, including for digital assets.
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Expired
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Additional Information
Print number: 118_HR_5741
Sponsor: Rep. Flood, Mike [R-NE-1]
Process start date: 2023-09-27
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Uniform Treatment of Custodial Assets Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_5741.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-09-27.

What are the main provisions?

Key points include:

  • Banks and financial institutions will not be required to list client assets (e.g., money, securities, cryptocurrencies) as their own liabilities on their balance sheets.
  • These institutions will not need to hold additional regulatory capital against assets held in custody for clients, unless necessary to mitigate operational risks.
  • The changes aim to ensure financial institutions can provide asset custody services without unnecessary regulatory burdens, potentially fostering the growth of custodial services, including for digital assets.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Flood, Mike [R-NE-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Economy