BNY Mellon Receives SEC Approval to Offer Bitcoin Custody Services
- BNY becomes the initial bank selected by the SEC for Bitcoin safekeeping services.
- The acceptance illustrates the growing passion for corporate Bitcoin expenditure.
- Smaller enterprises raise concerns about regulatory fairness and competition in the crypto space.
BNY Mellon has become the first U.S. financial institution to be approved the Securities and Exchange Commission to offer BTC custody services. This exemption from the SEC’s Staff Accounting Bulletin 121 allows the bank to enter the digital asset custody space and represents a noteworthy step for companies entering the e-commerce sector.
SEC Approval Opens New Doors
The SEC’s approval was confirmed during a public hearing by Wyoming’s Select Committee on Blockchain and Financial Technology. Chris Land, counsel for Senator Cynthia Lummis, explained that the exemption lets BNY Mellon move forward with Bitcoin custody services, which had previously faced regulatory challenges.
The approval highlights the growing demand for secure Bitcoin services among institutional investors. The organization’s involvement may encourage more traditional banks to explore similar opportunities and could expand the role of financial institutions in digital asset markets.
Institutional Participation Expands
BNY Mellon’s move into BTC custody comes at a time of increased interest in Bitcoin-related products. Bitwise’s CIO recently pointed out the growing demand for exchange-traded funds linked to the coin. This shows a rising institutional appetite for secure investments in crypto.
Additionally, the firm operates under the supervision of the NYC’s Department of Revenue Services and the Federal Reserve, which ensures its custody services remain compliant. This endorsement from the investment exchange could pave the way for more banks to provide similar services and further integrate digital assets into traditional monetary transactions.
Read CRYPTONEWSLAND on google newsConcerns for Smaller Firms
Some smaller crypto firms, including Custodia and Kraken, have raised concerns that BNY Mellon’s exemption gives larger institutions an unfair advantage. Cyrus Western, Chair of Wyoming’s Select Committee, noted that smaller firms continue to face stricter regulatory hurdles even though they have followed guidelines.
There are also concerns in the crypto community that this move could affect BTC’s original decentralized goals. Could the increasing role of large banks shift BTC away from its founding principles? BNY Mellon’s entry into crypto custody may change the landscape of the market as traditional financial corporations expand their involvement in virtual currencies.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tether invests $775 million in Rumble
Dogecoin drops over 30% from its yearly high of $0.48
Mo Shaikh steps down as CEO of Aptos Labs
MetaMask users can now stake EOS coins