Bank of New York Mellon Is Moving Forward With Crypto ETF Custody Services

The Bank of New York Mellon (BNY) is moving forward with providing bitcoin and ethereum custody services for its exchange-traded fund (ETF) clients. This comes after the US Securities and Exchange Commission (SEC) decided, following a review, that BNY does not need to comply with the controversial crypto-asset accounting rule, SAB 121. SAB 121 has been putting pressure on the crypto industry by requiring firms hosting crypto-assets to include them in their accounts as liabilities since its introduction in 2022.The SEC said that banks such as BNY's customer protections are sufficiently robust to allow it to accounting treatment to be consistent with traditional custody arrangements.BNY still needs to obtain other regulatory approvals before it can formally offer its services.