The Bitcoin Business Newsletter | BNY Mellon Approved for Bitcoin Custody
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Key insights
US bank receives first approval for Bitcoin custody.
BNY Mellon, the world’s largest custodian bank, has confirmed it can offer cryptocurrency custody services for exchange-traded products (ETPs) without adding those assets to its balance sheet, following SEC approval. This development eases some restrictions imposed by the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which had previously made it impractical for banks to custody crypto assets due to balance sheet implications.
In a statement, the SEC clarified that,
Certain broker dealers and custody banks have sufficiently demonstrated to SEC staff that their fact patterns are different from those described in SAB 121.
However, BNY Mellon must still obtain case-by-case approval from the SEC’s Office of the Chief Accountant, meaning SAB 121 continues to limit broader bank involvement in crypto custody. Meanwhile, the House Financial Services Committee is challenging SAB 121, arguing it disrupts bank custody rules and hinders financial innovation. Previous attempts to overturn the bulletin were vetoed by President Biden, highlighting ongoing regulatory uncertainties.
This marks a major milestone for Bitcoin and its journey toward mainstream adoption. Simultaneously, another significant development warrants discussion due to its profound implications for Bitcoin inflows.
SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF
The SEC has approved options trading on BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF. This enables investors to hedge Bitcoin positions directly within traditional financial markets, offering new tools for risk management. The move signifies increased regulatory acceptance of Bitcoin, potentially accelerating institutional adoption and integration into mainstream finance.
Top News Stories
BNY Mellon Moves Forward With Bitcoin Custody Services Following SEC Exemption
Bank of New York Mellon (BNY Mellon) is making significant strides toward launching custody services for Bitcoin (BTC) and Ethereum (ETH), following its recent exemption from the Securities and
PayPal Expands Services to Business Accounts for Buying, Holding, and Selling Bitcoin
PayPal now allows U.S. business accounts to buy, hold, sell, and transfer Bitcoin, expanding its crypto options for merchants.
SEC Greenlights Options Trading for BlackRock’s IBIT Spot Bitcoin ETF
The SEC approved options trading for BlackRock's iShares Bitcoin Trust, marking a key milestone for Bitcoin in traditional finance.
Fed Cuts Interest Rates by 50 Basis Points, Bitcoin Briefly Hits $61K Before Sell-Off
Market participants were uncertain about the size of the rate cut prior to the Fed meeting, laying the groundwork for market volatility.
MicroStrategy Increases Its Bitcoin Holdings by $489 Billion
MicroStrategy's $489 million Bitcoin purchase brings its holdings to over 252,000 Bitcoin ($10 billion) to boost returns and hedge against inflation.
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🆚USD vs Bitcoin in 2024: A Battle for the Future of Money
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“[Bitcoin] is a very exciting development, it might lead to a world currency. I think over the next decade it will grow to become one of the most important ways to pay for things and transfer assets.”
– Kim Dotcom, CEO of MegaUpload
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