Bank of New York Mellon (BNY) is about to offer custody services for Bitcoin and Ethereum to its ETF clients after the U.S. SEC decided that BNY does not need to comply with the controversial crypto asset accounting rule SAB 121 after a review.
The bank said in a statement on Tuesday that the U.S. SEC’s Office of the Chief Accountant conducted a review earlier this year and did not object to its decision that crypto assets secured for clients of its regulated ETFs should not be recognized on BNY Mellon’s balance sheet.
The General Accounting Office has raised no objections to a number of other financial institutions in recent months. “Certain broker-dealers and custodian banks have adequately demonstrated to the SEC staff that their fact patterns differ from those described in SAB 121,” an SEC spokesman said.
The SEC said the firms must still ensure that customers retain title to their assets even in the event of bankruptcy. “In such cases, their balance sheet treatment is the same as in a custodial arrangement, as long as their customers receive the same protections with respect to crypto assets as in a custodial arrangement,” the SEC added. (Bloomberg)

#BTC #ETF #ETH