The U.S. Securities and Exchange Commission (SEC) has approved Bank of New York Mellon Corp (BNY) to expand its crypto asset custody services beyond exchange-traded funds (ETFs).
SEC Chair Gary Gensler made the announcement, which could impact Coinbase, currently a leading custodian for spot Bitcoin ETFs.
BNY Mellon, which already manages over $2 trillion in crypto assets, currently provides custody for Bitcoin and Ethereum ETFs. The bank submitted a proposal to the SEC’s Office of Chief Accountant to safeguard Bitcoin and Ethereum without listing them as balance sheet liabilities, ensuring the protection of customer funds in case of insolvency.
The SEC has now granted a “no-objection” to the proposal, allowing BNY to meet regulatory requirements more easily.
Gensler also highlighted that BNY Mellon’s approved custody structure, initially designed for Bitcoin and Ethereum, could extend to other digital assets.
This approval paves the way for BNY and other banks to broaden their crypto custody services across a wider range of digital assets.
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