The Bank of New York Mellon, the largest U.S. custodian bank, has received an exemption from a controversial SEC rule that may enable Bitcoin custody. This marks a significant step forward for institutional custody of Bitcoin and other cryptocurrencies in the United States.

BNY Mellon’s Exemption from SAB 121

BNY Mellon was reportedly granted permission to operate outside the Staff Accounting Bulletin No. 121 (SAB 121) issued by the Securities and Exchange Commission (SEC). SAB 121 had advised entities holding customer crypto to report such holdings as corporate liabilities and required financial service providers to disclose the type of crypto safeguarded along with its valuation.

Although lawmakers in the U.S. House of Representatives initially opposed the SEC’s policy, the White House under President Joe Biden vetoed the bill, making it law.

Implications for Major U.S. Banks

Securing an exemption from SAB 121 could pave the way for major U.S. banks to custody Bitcoin and other cryptocurrencies. Michael Saylor, founder of MicroStrategy and the world’s largest corporate Bitcoin holder, has indicated that one or more mainstream banks may soon receive approval to custody crypto.

Credible rumors are circulating that one or more major banks in the US will soon be able to custody Bitcoin.

Potential Impact on Bitcoin and the Crypto Market

This development could signal a softening of the U.S. federal crypto crackdown, which industry proponents have criticized for years. Allowing banks like BNY Mellon to custody Bitcoin may also accelerate BTC’s spot price. Saylor has previously suggested that bank custody of BTC was one of three catalysts needed to propel Bitcoin above $5 million per coin.

Michael Saylor: 3 catalysts will take Bitcoin to $5 million:
🟢 Spot ETF approval
🟢 Fair value accounting rules from FASB
🟠 Banks custody and lend against Bitcoin as collateral – coming soon

Stay informed about the latest cryptocurrency news and developments as the landscape continues to evolve.

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