BNY Mellon Enters Bitcoin Custody Scene As SEC Okays Service: Report
Highlights
- BNY Mellon received the green light to offer Bitcoin custody services.
- The report cited a testimony from a counsel to Sen. Cynthia Lummis.
- This spells a turnaround for institutions looking to offer crypto custody services.
According to a new report, BNY Mellon, the largest custodian bank in the United States, has secured the approval of the Securities and Exchange Commission (SEC) to offer Bitcoin custody services. The bank was identified as an institution exempted from the financial regulator’s rules. This could trigger more institutional investment in the crypto scene should the Commission give the green light to more firms.
BNY Mellon To Offer Bitcoin Custody Services
Financial services company, BNY Mellon has reportedly secured approval from the US SEC to offer Bitcoin custody services. According to a recent Unchained report, the bank was named during a public hearing in Wyoming’s Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology as an institution that received an exemption from the SEC.
Chris Land, a counsel for Sen Cynthia Lummis testified that the way is cleared for the company to provide custody services. “[BNY] is looking to get more involved in the crypto custody business. They had some problems with Staff Accounting Bulletin (SAB) 121, and the SEC has given them some kind of variance from SAB 121 to move forward.”
This could lead to new institutional participation in the market as more traditional companies become custodians. The approval of spot Bitcoin ETFs and related efforts have led to increased institutional appetite. Recently, Bitwise CIO highlighted a new milestone for these Bitcoin ETFs.
SEC Exemptions To Trigger Investments
The financial regulator granted some exceptions to SAB 121 which makes it tougher for institutions like BNY Mellon to provide crypto custody. Paul Munter, SEC Chief Accountant revealed that the Commission granted exception to a bank and brokerage houses without naming any specifically. In August an SEC insider revealed why the Commission eased the rules.
“In the case of the bank, he said, the conditions involved the institution working with a state regulator first to ensure that the crypto assets being custodied would return to the customer in the event of a bankruptcy, and that activity with customers would only comprise institutional custody with sufficient controls in place to manage risk,” the report added.
- Bitcoin Should Be At $148,000 To Match With Gold Rally, Says Peter Schiff
- Dogecoin Gets Major Upgrade With Cardinals Index Node Launch, Analyst Predicts 37x Rally
- Coinbase Announces DoubleZero (2Z) Listing Following the US SEC’s No-Action
- Grayscale Staking Ethereum ETF Debuts By Locking 32,000 ETH But Inflows Disappoint
- Pi Network Loses $18B Value in Six Months as Expert Warn of “Rug Pull” Risk
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
