BNY to Offer Custody Services for Crypto ETFs

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BNY Mellon (BNY) is making progress in offering custody services for its clients’ Bitcoin and Ether ETFs, after the SEC granted it an exemption from following controversial accounting rules for cryptocurrencies.

According to Bloomberg, the SEC’s Office of the Chief Accountant reviewed the bank’s operations and determined that it did not need to comply with SAB 121, which requires companies to list client crypto assets as liabilities in their accounting.

This regulation has been a source of difficulty for the US crypto industry since it was introduced in April 2022.

The SEC suggested that other financial institutions may also receive exemptions, stating that as long as these entities provide the same level of protection for client crypto assets as they do for other custody arrangements, their accounting treatment will be the same.