Big Banks & Bitcoin: BNY Mellon Gets the Green Light, but at What Cost?

• BNY Mellon gets SEC approval to offer Bitcoin and digital asset custody services.
• Concerns arise over Bitcoin’s decentralization as major banks enter crypto custody.
• SEC exemptions under SAB 121 prompt mixed reactions from the crypto community.

BNY Mellon, a major global asset custodian, secured approval from the U.S. Securities and Exchange Commission (SEC) to provide Bitcoin and other digital asset custody services, on September 20, 2024. The approval allows the $49 trillion asset custodian to hold not only Bitcoin but also various digital assets.

The SEC granted BNY Mellon a variance from Staff Accounting Bulletin (SAB) 121. This regulation initially posed challenges for banks wanting to enter the crypto custody space, requiring them to list digital assets as liabilities on their balance sheets.

Centralization Concerns Arise…

The post Big Banks & Bitcoin: BNY Mellon Gets the Green Light, but at What Cost? appeared first on Coin Edition.