**BNY Mellon Moves Closer to Bitcoin and Ether Custody Services**
The Bank of New York Mellon (BNY) is gearing up to offer custody services for Bitcoin and Ether ETFs after the SEC eased controversial crypto accounting rules. Earlier this year, the SECâs Office of the Chief Accountant reviewed BNY's practices and decided the bank didn't need to follow the stringent Staff Accounting Bulletin (SAB) 121.
SAB 121, introduced in April 2022, required companies to list client crypto assets as liabilities, causing headaches in the crypto industry. The SEC hinted that other financial institutions might also get similar leniency if they ensure customer protection.
BNY still needs other regulatory approvals before launching these services. The bank stated it will continue engaging with regulators to scale its crypto custody offerings.
SAB 121 has been contentious, with critics arguing it was disguised regulation. Despite political pressure and legislative attempts to overturn it, the SEC maintained its stance, and President Biden vetoed the legislation aimed at reversing the guidance.
