These services might possibly embrace a wider variety of digital assets than simply Bitcoin and Ethereum exchange-traded funds (ETFs).
The effort of Bank of New York Mellon Corp. (BNY Mellon) to offer custody services for digital assets has been approved by the Securities and Exchange Commission (SEC) of the United States of America.
Gary Gensler, the chair of the Securities and Exchange Commission, indicated that the framework that BNY Mellon is applying is not limited to particular cryptocurrencies. This does not exclude the possibility of a wider application to a variety of digital assets.
According to Bloomberg, the Securities and Exchange Commission (SEC) has given a “non-objection” to the custody system of BNY Mellon, which enables the bank to keep digital assets while still adhering to regulatory norms.
The strategy used by BNY Mellon involves the use of individual cryptocurrency wallets that are connected to separate bank accounts. This ensures that client monies are safeguarded in the event that the bank becomes insolvent. The purpose of this arrangement is to meet a necessary criterion for regulatory compliance, which is to avoid the assets of the bank from being mixed with those of the customers.
While Gensler noted that BNY Mellon first talked with the SEC on Bitcoin and Ethereum, he also mentioned that the structure that was authorized may be modified to allow new cryptocurrencies. c.
Because of this flexibility, BNY Mellon is able to explore custody services for a wider variety of digital assets, based on the regulatory rules and the strategic choices made by the bank.
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