The US Securities and Exchange Commission (SEC) has approved Bank of New York Mellon Corp.’s (BNY Mellon) plan to offer custody services for digital assets, a move that could extend beyond Bitcoin and Ether exchange-traded funds (ETFs).
SEC Chair Gary Gensler confirmed that the structure BNY Mellon is using is not limited to specific cryptocurrencies, potentially broadening its application for other digital assets.
US SEC Greenlights BNY Mellon’s Crypto Custody Plan
According to a Bloomberg report, the SEC has given a “non-objection” to BNY Mellon’s proposed custody structure, allowing the bank to hold digital assets without violating regulatory requirements.
BNY Mellon’s plan includes individual crypto wallets that are tied to separate bank accounts, ensuring that customer funds are safeguarded in the event of the bank’s insolvency. This structure has been designed to keep customer assets from being comingled with the bank’s own assets, a critical requirement for regulatory compliance.
Gary Gensler noted that while BNY Mellon’s consultation with the SEC initially involved Bitcoin and Ether, the approved structure is adaptable and not restricted to these cryptocurrencies. This opens the door for BNY Mellon to explore custody services for a wider range of digital assets, subject to the bank’s discretion and regulatory comfort levels.
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