Bank of New York Mellon breaks through regulatory barriers and is about to lead a new era of crypto ETF custody!
Bank of New York Mellon, the oldest bank in the United States, has made a key breakthrough in the field of digital asset ETF custody after strict regulatory review.
According to Bloomberg, Bank of New York Mellon has obtained an exemption from the Office of the Chief Accountant of the U.S. Securities and Exchange Commission, which means that the bank is expected to restart custody services for Bitcoin and Ethereum spot ETFs.
The regulatory green light is on
As the world's largest custody bank, Bank of New York Mellon once faced a challenge: According to the SAB 121 rule implemented in March 2022, banks are required to disclose the crypto assets they hold as liabilities in their balance sheets. This limits the pace of innovation in the field of digital assets. But after hard work, the bank successfully obtained a special injunction allowing it to continue to advance its custody plan for Bitcoin and Ethereum spot ETFs without public disclosure.
Bank of New York Mellon said its legal team will continue to communicate with regulators for broader unanimous approval. It is worth mentioning that the bank has supported 80% of the Bitcoin and Ethereum ETFs approved by the US Securities and Exchange Commission.
Failed to repeal SAB 121
Although the House and Senate voted against SAB 121 earlier this year, hoping to clear the way for banks to get involved in cryptocurrencies, President Joe Biden ultimately did not approve it.
Crypto custody ambitions
In its financial report, Bank of New York Mellon made it clear that it intends to enter the digital asset field in the future and plans to get involved in cryptocurrency custody business as early as 2022.
According to Bloomberg, the current cryptocurrency custody market has reached $300 million and is growing rapidly at a rate of 30% per year. At this rate, the industry is expected to exceed the $1 billion mark in the next eight years.
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