‼️ Bank of New York Mellon, the largest depository bank in the US, has been granted an exemption from a controversial SEC rule that could have provided oversight of Bitcoin. ‼️$BTC
Corporate oversight of Bitcoin and cryptocurrencies in the US has taken a step forward as BNY Mellon has reportedly been granted permission to operate outside of Staff Accounting Bulletin No. 121, also known as SAB 121.
The Securities and Exchange Commission’s SAB 121 recommended that entities holding client crypto should report such holdings as corporate liabilities. SAB 121 also required financial services providers to disclose the type of crypto being hedged and the valuation that accompanies it.
US lawmakers in the House of Representatives initially repealed the SEC’s policy, but the White House under incumbent President Joe Biden signed the bill into law.
BNY Mellon’s securing an exemption from SAB 121 requirements could pave the way for major U.S. banks to store customers’ Bitcoin and cryptocurrencies. Michael Saylor, founder of MicroStrategy, the world’s largest institutional BTC holder, said one or more mainstream banks could soon get the green light to store crypto.
Such a development could signal a softening of the U.S. federal crackdown on crypto. For years, industry advocates have criticized U.S. authorities for “Operation Choke Point 2.0,” a multi-regulatory agenda to drive crypto out of the traditional financial system.
The ability of BNY Mellon and other banks to store Bitcoin could also boost BTC’s spot price. Saylor has previously suggested that bank custody of BTC is the last of three catalysts needed to push Bitcoin above $5 million per coin.