As a seasoned researcher with a keen interest in the evolving financial landscape, I find this development incredibly intriguing. The SEC’s approval of BNY Mellon’s digital asset custody plan signals a significant step forward in mainstream adoption of cryptocurrencies.
The United States Securities and Exchange Commission (SEC) has given the green light to Bank of New York Mellon Corporation’s (BNY Mellon) proposal to manage digital asset custody. This decision potentially expands their services beyond Bitcoin, Ether exchange-traded funds (ETFs).
As an analyst, I can confirm that Gary Gensler, the head of the Securities and Exchange Commission (SEC), has revealed that the structure employed by BNY Mellon is not confined to only certain cryptocurrencies. This suggests a broader potential for its application across various digital assets.
US SEC Greenlights BNY Mellon’s Crypto Custody Plan
Based on a Bloomberg report, the Securities and Exchange Commission (SEC) has approved, or given no objection to, BNY Mellon’s proposed digital asset custody structure. This means that the bank is now allowed to manage digital assets without running afoul of regulatory guidelines.
BNY Mellon’s strategy involves creating personal cryptocurrency wallets linked to distinct banking accounts. This setup aims to secure customers’ funds even if the bank faces bankruptcy. The design of this system is intended to prevent customer funds from being mixed with the bank’s assets, a crucial aspect for adhering to regulatory standards.
Gary Gensler mentioned that at first, BNY Mellon’s consultation with the SEC centered around Bitcoin and Ether. However, the approved structure is flexible and not limited to these specific cryptocurrencies. This flexibility allows BNY Mellon to consider offering custody services for a broader variety of digital assets, as long as it aligns with the bank’s judgement and comfort levels regarding regulations.
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2024-09-27 00:49