BNY Mellon to Provide Crypto Custody for ETFs Following SEC Decision

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. SEC Decision
  2. Issues with SAB 121
  3. Industry and Government Reaction


    4. The Bank of New York Mellon (BNY) is moving towards providing custody services for Bitcoin and Ether for its ETF clients after the United States Securities and Exchange Commission (SEC) allowed it to bypass controversial crypto accounting guidelines.

    SEC Decision

    Earlier this year, the SEC’s Office of the Chief Accountant conducted a review and concluded that the bank did not need to adhere to the SEC’s Staff Accounting Bulletin (SAB) 121. This bulletin requires companies safeguarding client crypto assets to list them as liabilities on their balance sheet.

    Issues with SAB 121

    SAB 121 has been a thorn in the side of the US crypto industry since its introduction in April 2022. After being incorporated into Coinbase’s Q1 2022 financial report, it led to false speculation that the company was insolvent. Politicians have also repeatedly criticized the guidelines, calling them “regulation disguised as staff guidance.”

    Industry and Government Reaction

    In October 2023, the Government Accountability Office determined that SAB 121 is subject to the Congressional Review Act, requiring agency rules to be submitted to Congress with a procedure for disapproval. Despite industry pressure and even legislation aimed at overturning SAB 121, President Joe Biden vetoed the legislation in June. Meanwhile, BNY Mellon continues to engage its banking regulators to offer custody services to its crypto ETF clients.

    The SEC's decision to allow BNY Mellon to proceed on its terms may be a significant step toward broader acceptance of cryptocurrencies in the financial sector, yet numerous unresolved issues and controversies remain.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Optimism Releases Required Batcher Update v1170

Optimism has announced the release of opbatcher v1170, which is mandatory for operators using the batching infrastructure for OP Stack chains.

user avatarAndrew Smith

NEAR Developers Release First Candidate for nearcore 2140

The NEAR developers have published the first release candidate for nearcore 2140, introducing significant protocol and database changes.

user avatarJacob Williams

Lido Completes Winddown of Regular Simple DVT Clusters

Lido has successfully completed the winddown of its regular Simple DVT clusters, marking a significant step in the decentralization of its validator operations.

user avatarZainab Kamara

Avalanche Schedules Helicon Network Upgrade for September 22

Avalanche has announced the Helicon network upgrade for its mainnet, set to activate on September 22 at 1500 UTC.

user avatarSon Min-ho

Uniswap Proposes Protocol Fee Rollout to Circles Arc Blockchain

Uniswap Labs has introduced a proposal to extend its protocol fee collection and UNI burn infrastructure to the Arc blockchain.

user avatarAyman Ben Youssef

Aave V4 Now Live on Circle's Arc Blockchain

Aave V4 has officially launched on Circle's newly established Arc blockchain, featuring key assets such as USDC, EURC, cirBTC, and WETH.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.