Bank of New York Mellon’s Crypto Custody Plan for Bitcoin and Ethereum Gets SEC Nod

COINOTAG news, September 27, according to Bloomberg, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), stated that the digital asset custody service structure of Bank of New York Mellon can also be applied to cryptocurrencies beyond Bitcoin and Ethereum ETFs. The bank’s proposed infrastructure incorporates the use of individual crypto wallets, each linked to a distinct bank account, and forbids the commingling with bank assets. Bank of New York Mellon has submitted a Bitcoin and Ethereum custody scheme to the SEC’s Office of the Chief Accountant to safeguard customer funds amidst potential bank insolvency. The SEC expressed “no objection” to the proposal, indicating that the structure will not infringe on the SEC’s regulations mandating banks to reflect the value of digital assets in custody on their balance sheets. Notably, Bank of New York Mellon previously became the first bank to secure an exemption from the SEC’s crypto accounting policy SAB 121.