US financial regulators are warning banks about the potential pitfalls of getting into crypto custody services. The big concern? If digital assets go missing or get hacked while under a bank's watch, they could be on the hook for losses.

Editor’s Note: As more traditional banks dip their toes into crypto, regulators are making it clear this isn’t business as usual. The warning highlights the messy reality of handling digital assets—where irreversible losses and unclear liability could turn into costly headaches. For banks, it’s a reminder that crypto’s wild west reputation still lingers, even as they try to bring it into the mainstream.