⏰ Act Early, Profit Big!
Be among the first to access the newest altcoins. Don't miss out, click now!

BNY Mellon Receives Preferential Treatment from US SEC for Crypto Custody, Sparking Industry Dissent

  • BNY Mellon takes a significant leap towards offering custodial services for cryptocurrency ETFs.
  • Controversy brews as notable figures in the crypto space like SEC Commissioner Hester Peirce and Caitlin Long speak out against alleged preferential treatment.
  • Coinbase, a key player in the crypto custody sector, now faces potential competition from BNY Mellon.

BNY Mellon’s strategic move into crypto custody puts Coinbase on alert, sparking debate over regulatory favoritism and the evolving landscape of digital asset management.

BNY Mellon Authorized to Provide Crypto Custody

BNY Mellon, a leading banking institution, has recently received SEC approval to offer custodial services for both Bitcoin (BTC) and Ethereum (ETH) to ETF issuers. This landmark decision allows BNY Mellon to bypass specific SAB 121 accounting rules, particularly those governing crypto custodians. The approval signals a noteworthy development within the financial sector, as traditional banks begin to embrace digital assets.

Regulatory Discrepancies and Industry Reactions

This development has not gone unnoticed in the crypto industry. SEC Commissioner Hester Peirce and Caitlin Long, CEO of Custodian Bank, have publicly criticized the decision, alleging unfair regulatory treatment. They argue that while entities like BNY Mellon benefit from regulatory leniency, other financial institutions face stringent restrictions on crypto custody. Caitlin Long has been particularly vocal, highlighting the contradictions in the Federal Reserve’s stance on digital asset risk versus its actions.

Implications for Coinbase and the Broader Market

Coinbase, which has largely dominated the crypto custody market amid regulatory crackdowns on other providers like Silvergate Bank, now faces increased competition. BNY Mellon’s entry into the space represents a significant shift. Since early 2023, BNY Mellon has demonstrated considerable interest in the cryptocurrency industry, supporting a substantial portion of Bitcoin and Ether ETFs approved by the SEC. The bank’s move to expand into crypto custody aligns with rising demand and positions it as a formidable competitor in the market.

Perspective from Industry Leaders

During recent discussions, SEC Commissioner Hester Peirce reiterated concerns over the agency’s inconsistent application of SAB 121 regulations. At the same time, BlackRock’s Head of Digital Assets, Robbie Mitchnick, emphasized continuity and adaptation in their custodial practices amidst emerging competition. Mitchnick’s comments underscore the dynamic nature of the crypto industry, where regulatory frameworks and market strategies are continually evolving.

Conclusion

BNY Mellon’s foray into the crypto custody sector marks a significant development with far-reaching implications. While the SEC’s decision to exempt certain regulatory rules for BNY Mellon has sparked debate over preferential treatment, it also introduces heightened competition for established players like Coinbase. As the digital asset space continues to mature, stakeholders must navigate an increasingly complex regulatory landscape, balancing innovation with prudent risk management.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Binance Wallet Announces Delphinus Lab TGE Event Participation for Users with 225+ Alpha Points

On July 22, Binance Wallet announced that holders with...

Capital B Raises €10.3 Million to Boost Bitcoin Financial Strategy

Capital B, a publicly traded entity, has declared a...

Gate Launches ZKWASM Perpetual Contract Trading with Up to 20x Leverage on July 22

On July 22, Gate is set to introduce its...

BNB Chain Swaps 25,000 USDT for 40 Million TAG Tokens in $100M Ecosystem Incentive Program

BNB Chain recently disclosed a significant transaction involving the...

US Bitcoin Spot ETF Faces $131.4 Million Net Outflow on July 22, Reports Farside Investors

On July 22, Farside Investors reported a significant net...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img