BNY Approved by SEC for Crypto Custody Beyond ETFs, Gensler Says
- BNY’s individual wallet structure protects customers: Gensler
- Up to the bank on expanding beyond Bitcoin, Ether ETF custody
The structure Bank of New York Mellon Corp. is using to offer custody services for digital assets could be used beyond the Bitcoin and Ether exchange-traded funds that the bank is considering, according to US Securities and Exchange Commission Chair Gary Gensler.
Earlier this week, the bank acknowledged that it had presented a plan to the SEC’s Office of Chief Accountant to custody those two assets in a way that would protect customer funds in the event of bank insolvency. The agency provided BNY with a “non-objection” to the plan, a regulatory term that gives comfort to the bank that its structure won’t fall afoul of the agency’s requirement that banks reflect the value of the digital assets they custody on their balance sheet. BNY previously told Bloomberg News that the SEC’s non-objection was specific to the ETF use case.