SEC Officially Approves BNY Mellon’s Crypto Custody Plan

The U.S. Securities and Exchange Commission (SEC) has greenlit Bank of New York Mellon Corp.'s (BNY Mellon) initiative to provide custody services for digital assets, potentially encompassing a range beyond just Bitcoin and Ethereim ETFs.

SEC Chair Gary Gensler stated that the framework BNY Mellon is implementing is not confined to specific cryptocurrencies, which could allow for a broader application to various digital assets.

As reported by Bloomberg, the SEC issued a “non-objection” to BNY Mellon’s custody structure, enabling the bank to hold digital assets while remaining compliant with regulatory standards.

BNY Mellon’s approach features individual crypto wallets linked to separate bank accounts, ensuring that customer funds are protected in case of the bank’s insolvency. This setup is designed to prevent customer assets from being mixed with the bank’s own, fulfilling an essential requirement for regulatory adherence.

Gensler mentioned that while BNY Mellon initially consulted with the SEC regarding Bitcoin and Ethereum, the approved structure can be adjusted to accommodate other cryptocurrencies. c

This flexibility allows BNY Mellon to consider custody services for a broader array of digital assets, depending on regulatory guidelines and the bank’s strategic decisions.