TechFlow reported on September 27, according to Bloomberg, that Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), said The Bank of New York Mellon's digital asset custody service structure could be applied to cryptocurrencies beyond Bitcoin and Ethereum ETFs. The bank's proposed structure includes using individual crypto wallets, each linked to a separate bank account, with prohibitions against commingling with bank assets.
The Bank of New York Mellon has submitted its Bitcoin and Ethereum custody plans to the SEC’s Office of the Chief Accountant to protect client funds in the event of bank bankruptcy. The SEC expressed "no objection" to the proposal, meaning the structure would not violate SEC rules requiring banks to reflect the value of custodied digital assets on their balance sheets. Previous report, The Bank of New York Mellon became the first bank to receive an exemption from the SEC's crypto accounting policy SAB 121.
