As an analyst with over two decades of experience in the financial industry, I have witnessed the evolution of digital assets from a curiosity to a mainstream investment option. The news that BNY Mellon has secured an exemption from SAB 121 is a significant development, not just for Bitcoin, but for the entire crypto ecosystem. This could potentially open the floodgates for other major U.S. banks to follow suit, paving the way for institutional custody of cryptocurrencies in the U.S.
The biggest American custodian bank, Bank of New York Mellon, was granted an exception to a disputed SEC regulation, potentially allowing for custody services related to Bitcoin.
The custody of Bitcoin (BTC) and other cryptocurrencies in U.S. institutions moved a step forward when BNY Mellon was reportedly given the go-ahead to operate beyond Staff Accounting Bulletin No. 121, often called SAB 121. This means they can manage these digital assets without adhering to certain accounting rules that apply to traditional assets.
According to the guidance provided by the Securities and Exchange Commission (SEC) through SAB 121, companies that possess customer cryptocurrency should list these assets as liabilities on their corporate balance sheets. Moreover, financial institutions were mandated by SAB 121 to reveal details about the type of cryptocurrency being safeguarded, along with its current market value in their financial disclosures.
Initially, lawmakers in the U.S. House of Representatives decided not to uphold the Securities and Exchange Commission’s (SEC) policy. However, under the presidency of Joe Biden, the White House used its veto power to block this decision, effectively turning it into a law instead.
Obtaining an exemption from SAB 121 regulations by BNY Mellon could potentially open up a path for significant American banks to manage customers’ Bitcoin and cryptocurrencies. Michael Saylor, MicroStrategy’s founder and the world’s largest corporate Bitcoin holder, hinted that one or more traditional banking institutions might soon receive approval to handle cryptocurrency assets.
Trustworthy whispers suggest that at least one, or possibly more, prominent American banks might soon begin holding Bitcoin as a custodial service.
— Michael Saylor⚡️ (@saylor) September 20, 2024
This growth might indicate a more lenient stance by U.S. federal authorities towards cryptocurrency regulation, as they have faced criticism for “Operation Choke Point 2.0” – a coordinated effort across various regulatory bodies aimed at excluding cryptocurrencies from the conventional financial infrastructure, which critics have been vocal about for years.
As a crypto investor, I firmly believe that the ability of institutions like BNY Mellon and other banks to securely hold Bitcoin could significantly boost its market price, perhaps even pushing it towards the $5 million mark per coin. Just as I’ve observed, MicroStrategy’s CEO, Saylor, has suggested that bank custody of Bitcoin represents the third and final major catalyst required for such a price surge.
Read More
- DEXE PREDICTION. DEXE cryptocurrency
- EUR INR PREDICTION
- Shilpa Shetty’s Mumbai restaurant under radar after BMW car worth Rs 80 lakh gets stolen from parking; REPORT
- EXCLUSIVE: Decoding the importance of suspense around cameos in cinematic universe films
- TikTok’s Appeal to Overturn Ban Bill Denied by Federal Court
- NBC’s New Thriller Starring Manifest, La Brea Stars Sets Premiere Date: Details
- ZIG PREDICTION. ZIG cryptocurrency
- Is Red One a Box-Office Success?
- USD VES PREDICTION
- RSR PREDICTION. RSR cryptocurrency
2024-09-20 23:24