|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
BNY Mellon Lands SEC Exemption to Custody Bitcoin, Signaling Market Explosion is Ready to Happen
Sep 21, 2024 at 04:04 am
In a significant development for Bitcoin (BTC), the broader crypto market and the traditional banking industry, BNY Mellon has been identified as the first bank to receive an exemption from the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) 121.
America’s largest custodian bank, BNY Mellon, has been granted an exemption from a key accounting rule by the Securities and Exchange Commission (SEC), a move that could pave the way for banks to begin offering cryptocurrency custody services.
The exemption was revealed during a public hearing by the Wyoming Select Committee on Blockchain, Financial Technology, and Digital Innovation. Chris Land, the general counsel for pro-Bitcoin US Senator Cynthia Lummis, testified that the SEC has exempted BNY from the requirements of Staff Accounting Bulletin (SAB) 121.
The rule mandates that financial institutions that custody cryptocurrencies must record these digital assets on their balance sheets and create corresponding liabilities. However, the SEC has granted BNY an exemption from this requirement for cryptocurrency assets.
“BNY is looking to get more involved in the crypto custody business,” Land testified.
This highlights not only a significant shift in the bank’s strategy toward institutional digital asset management but also a sense of broader anticipation for Bitcoin’s adoption to expand the reach and offerings of these institutions to their clients.
The exemption for BNY Mellon could also pave the way for other financial institutions to explore similar opportunities. However, the SEC’s SAB 121 does require custodians to account for Bitcoin or other crypto assets on their balance sheets, which has reportedly been challenging for many banks.
Despite this, the SEC’s chief accountant, Paul Munter, recently indicated that certain exceptions could apply under certain conditions that were not disclosed in the report.
BNY Mellon is supervised by the New York Department of Financial Services (NYDFS) and the Federal Reserve, which plays a critical role in its compliance and operational framework.
Land noted that the Federal Reserve would have had to provide a non-objection to BNY’s entry into the digital asset custody sector, although the exact requirements remain somewhat ambiguous.
Chair Cyrus Western of Wyoming’s Select Committee also raised concerns about whether BNY would need to obtain New York’s BitLicense, a regulatory requirement for cryptocurrency businesses operating in the state. Land suggested that BNY might argue that federal banking laws preempt state regulations like the BitLicense.
The exemption granted to BNY has raised questions among other crypto firms. Custodia Bank and crypto exchange Kraken have both expressed frustration over what they perceive as “regulatory favoritism.”
Western noted that while companies like Custodia Bank have followed the rules and sought to operate transparently, they feel sidelined in favor of larger institutions like BNY.
On a more positive note, Michael Novogratz, the CEO of Galaxy Digital, speculated that the SEC’s exemption could signal a shift encouraging more traditional banks to get involved in cryptocurrency.
This aligns with BNY Mellon’s Chief Executive Officer Robin Vince’s recent commentary about the bank’s preparations for a more active role in the digital asset space.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Dogecoin (DOGE) Price Surges as On-Chain Activity Revives, Signaling Potential Bullish Resurgence
- Sep 21, 2024 at 08:20 am
- Recently, on-chain activity for Dogecoin has surged, indicating a growing positivity among investors towards the well-known dog-themed meme coin.
-
- #DOGEGOV: The Meme That's Reshaping Crypto Culture
- Sep 21, 2024 at 08:20 am
- In the fast-moving world of cryptocurrency, memes have played a vital role in shaping both communities and culture.
-
- BlockDAG Emerges as the Top Crypto to Buy Right Now, Poised to Deliver up to 30,000x ROI to Early Holders
- Sep 21, 2024 at 08:20 am
- BlockDAG is emerging as a real game-changer with almost $73.5 million raised in its presale. The project has raised the bar higher by launching
-
- BlockDAG Testnet Launches – 30,000x ROI Potential Soars
- Sep 21, 2024 at 08:20 am
- BlockDAG's much-anticipated testnet is set to go live on September 20, marking a critical milestone for developers and early adopters.
-
- BlockDAG: The Best Long-Term Crypto Miners Are Flocking To
- Sep 21, 2024 at 08:20 am
- As crypto markets continue to experience wild swings, Ethereum's climb towards $2,600 has reignited interest among investors hoping to catch the next big wave.
-
- Last Call to Claim $RBW Airdrop!
- Sep 21, 2024 at 08:15 am
- Everything you need to know about Rainbow Token Airdrop
-
- BingX Hack: Exchange Hot Wallets Lost Almost $43 Million on Friday, Due to Hacker Activity
- Sep 21, 2024 at 08:15 am
- One of the biggest crypto attacks this year, this event raises doubts about centralized exchange security policies.
-
- Popcat Crypto Rising in a Pattern
- Sep 21, 2024 at 08:15 am
- CryptoxLawyer.eth (@Cryptox_Lawyer) tweeted that the POPCAT price is rising in a pullback format. Recently, the price pulled back and extended near the ATH.
-
- OpenSea Sued for Misleading Investors, SEC’s NFT Stance Sparks Regulatory Concerns
- Sep 21, 2024 at 08:15 am
- OpenSea, one of the leading Non-Fungible Token (NFT) marketplaces, has been hit with a class action lawsuit. The lawsuit alleges that it engaged in