ChainCatcher reported that according to Un Chained Crypto, in public testimony before the Wyoming Special Committee on Blockchain, Financial Technology and Digital Innovation Technology, Bank of New York Mellon (BNY), the largest custodian bank in the United States, was confirmed to have obtained an "exemption" from the U.S. Securities and Exchange Commission's (SEC) SAB 121 accounting standards for its institutional cryptocurrency custody business.

Chris Land, general counsel to U.S. Senator Cynthia Lummis (R-WY), claims that the SEC and potentially other regulators have cleared the way for BNY Mellon to offer institutional digital asset custody services. “BNY Mellon was looking to get more deeply involved in the cryptocurrency custody business, and they had some issues with SAB 121, and the SEC has apparently granted them some sort of exemption so that they can move forward,” Land said in his testimony.

Earlier, SEC Chief Accountant Paul Munter unexpectedly revealed in a speech that the agency has granted some SAB 121 exemptions, mainly finding that the rule does not apply to certain entities if certain conditions are met. Munter said that a bank, several brokerage firms, and other entities that use blockchain to track and transfer traditional financial assets have been exempted, but he did not specify the names of these entities.