BNY Mellon is taking significant steps toward entering the crypto custody market, particularly for Bitcoin and Ethereum exchange-traded funds (ETFs), after securing an exemption from the SEC, Bloomberg News reported on Sept. 24.
According to the report, BNY Mellon received an exemption from the SEC’s Staff Accounting Bulletin 121 (SAB 121) during a review by the Office of the Chief Accountant. This exemption allows the bank to classify customer crypto holdings differently, meaning they do not need to treat these assets as corporate liabilities.
This operational shift could empower more traditional banks to offer crypto custody services, a practice that has largely remained inaccessible to them until now. The development also positions BNY Mellon to challenge Coinbase’s current dominance in crypto asset management and builds on the firm’s crypto custody ambitions.
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