MicroStrategy CEO Michael Saylor has spilled the beans about major US banks being allowed to custody Bitcoin in the near future.
“Credible rumors are circulating that one or more major banks in the US will soon be able to custody Bitcoin,” Saylor said.
Saylor shared this rumor in response to the Bank of New York Mellon (BNY), a global financial services company, obtaining an exemption from the SEC’s controversial SAB 121 rule. The news transpired during a Wyoming Select Committee meeting on Blockchain Innovation.
The SAB 121 rule, which has been vigorously opposed within the cryptocurrency industry, forces banking institutions to make custodial digital assets part of their own balance sheets.
Cryptocurrency proponents, such as Rep. Ritchie Torres (NY-15), argue that the requirements violate accounting principles while also stifling innovation. “The SEC is effectively ordering companies not to experiment with blockchain technology,” Torres said during a recent congressional hearing.
According to crypto advocates, the rule is simply meant to bar major regulated financial entities from being able to provide financial custody.
However, SEC Chair Gary Gensler defended the policy, pointing to a string of high-profile crypto bankruptcies. Some anti-crypto lawmakers have also defended the rule.
The cryptocurrency lobby was fighting hard to override the controversial SEC guidance. The Senate voted to ditch the controversial rule in May. This prompted Saylor to opine that the U.S. “wants Bitcoin.” This, of course, was not enough to ditch the provision.
It remains to be seen whether the rule will be eventually repealed by the courts.
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