As a seasoned crypto investor with over a decade of experience navigating the volatile and dynamic landscape of digital assets, I find the recent news about BNY Mellon offering Bitcoin custody services incredibly promising. Having witnessed numerous regulatory hurdles and challenges faced by institutional players trying to enter the crypto market, this move is a significant step towards mainstream adoption.
Based on recent findings, BNY Mellon – America’s largest custodian bank – has received approval from the Securities and Exchange Commission (SEC) to manage Bitcoin custody services. The bank is considered one of the institutions that are exempted from the financial regulator’s rules. If the SEC grants similar permissions to additional firms, this could stimulate increased institutional investment in the cryptocurrency market.
BNY Mellon To Offer Bitcoin Custody Services
It’s been reported that BNY Mellon has gained approval from the US Securities and Exchange Commission (SEC) to provide Bitcoin storage solutions. As per a recent Unchained report, this bank was mentioned during a 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, acting as counsel for Senator Cynthia Lummis, stated that the path is now open for the company to offer custody services. In simpler terms, BNY Mellon is seeking to expand its presence in the crypto custody sector. They encountered issues with Staff Accounting Bulletin (SAB) 121, but the SEC has granted them an exception from SAB 121, enabling them to proceed.
Participation from institutions in the market might increase as conventional businesses take on the role of custodians, potentially spurred by the acceptance of spot Bitcoin ETFs and related initiatives. The growing interest among institutions is largely due to the recent developments and efforts surrounding Bitcoin ETFs. Notably, Bitwise CIO recently announced a significant achievement for these Bitcoin ETFs.
SEC Exemptions To Trigger Investments
The financial regulator has allowed certain exemptions to Rule SAB 121, making it more challenging for firms such as BNY Mellon to offer cryptocurrency custody services. Paul Munter, the SEC’s Chief Accountant, recently disclosed that the Commission had granted an exception to a bank and brokerage houses without specifying any particular ones. In August, an unnamed source from the SEC explained why the rules were relaxed by the Commission.
According to the report, he stated that for the bank, it was necessary to collaborate initially with a state regulator to verify that the cryptocurrency assets held would be returned to the client if the bank declared bankruptcy. Furthermore, the bank’s activities with customers would only involve institutional custody, under controlled conditions to mitigate risk.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- USD ZAR PREDICTION
- WQT PREDICTION. WQT cryptocurrency
- SHI PREDICTION. SHI cryptocurrency
- How to Get the Rooftop Stash at Jaunta’s Hope in Star Wars Outlaws
2024-09-20 22:59