Follow us on:

cc_icon

Post: Major Banks Push SEC to Allow Custodianship for Bitcoin ETFs

Major Banks Push SEC to Allow Custodianship for Bitcoin ETFs

Key Points:

  • Major banks in the United States are urging the SEC to adjust its definition of crypto assets to allow them to become custodians for Bitcoin exchange-traded funds (ETFs).
  • A trade group coalition, including the Bank Policy Institute, American Bankers Association, Financial Services Forum, and Securities Industry and Financial Markets Association, sent a letter to SEC Chair Gary Gensler making their case.
  • The coalition pointed out that U.S. banks were notably absent as custodians for recently approved spot Bitcoin ETFs.

Insight:

Major banks and financial institutions are seeking a greater role in the cryptocurrency industry by advocating for a change in the SEC’s definition of crypto assets. Currently, U.S. banks have been absent as custodians for Bitcoin ETFs, despite playing that role for other exchange-traded products. The coalition of banking associations argues that allowing banks to act as custodians for crypto assets would provide a level of expertise and regulatory oversight that could benefit investors and the industry as a whole.

By requesting a change in the definition of crypto assets, banks hope to expand their services into the growing cryptocurrency market and position themselves as trusted custodians for digital assets. This move could potentially open up new revenue streams for banks and provide investors with more secure and regulated options for investing in cryptocurrencies.

Hot Take:

This push by major banks to become custodians for Bitcoin ETFs demonstrates their recognition of the increasing importance and mainstream acceptance of cryptocurrencies. By engaging with regulators like the SEC, banks are attempting to establish themselves as key players in the cryptocurrency industry, potentially bringing additional legitimacy and stability to the market. If successful, this could lead to greater integration between traditional financial institutions and the rapidly evolving world of digital assets.

Recent Posts
Social Media
Twitter
Email
Telegram
Facebook
Offers
CheekyCrypto Membership Platform
Hardware Wallets
Bitget
Swissborg
Plutus Card