Uniform Treatment of Custodial Assets Act

This bill prevents federal regulators from requiring banks, credit unions, and trust companies to treat custody assets (like digital assets held for clients) as liabilities on their financial statements or to hold extra capital against them. It specifically stops institutions from recognizing liabilities for digital asset services they don’t own, unless those liabilities exceed related expenses. The law applies broadly to depository institutions but includes an exception: commingled cash held for third parties must still be listed as a liability. Key provisions aim to clarify accounting rules for digital assets, reducing regulatory complexity for financial institutions managing client custody. It directly affects banks, credit unions, and trust companies handling digital assets or custody services.