- U.S. banks and financial institutions are pushing the SEC to revise the definition of cryptoassets.
- This may allow these organizations to play a more important role in the cryptocurrency sector.
Major banks and financial institutions in the US are pushing the Securities and Exchange Commission (SEC) to revise the definition of cryptoassets. This could allow these organizations to play a more important role in the cryptocurrency sector. This is reported by Cointelegraph.
On February 14, 2024, a coalition of trade groups sent a letter to SEC head Gary Gensler. In it, it noted the approval of spot bitcoin ETFs, noting that U.S. banks are absent from these products as custodians.
“The Commission has approved 11 bitcoin-ETFs, giving investors access to this asset class through a regulated product. However, they lack banking organizations acting as asset custodians, which regularly fulfill that role in most other ETPs,” the letter said.
In addition, the coalition asked the SEC to consider amending Staff Accounting Bulletin 121 on guidance on accounting for cryptoasset custodial liabilities.
They said it has been two years since the guidance was issued and “several significant events” have occurred in that time. The current guidance requires banks to hold crypto assets on their balance sheet, they said.
Bloomberg senior analyst Eric Balchunas commented on the news:
US banks, left off key bitcoin ETF roles, are pushing the SEC to tweak guidance around holding digital assets. A bank trade gp coalition sent SEC letter asking them to exclude ETFs from broad crypto umbrella. They want a piece of the action. I don’t blame them, it isn’t fair…. pic.twitter.com/advPa94nK2
- Eric Balchunas (@EricBalchunas) February 15, 2024
“U.S. banks, left without key roles in bitcoin-ETFs, are pushing for the SEC to adjust the guidelines for owning digital assets. They want a piece of the profits. I don’t blame them, it’s not fair.”
Recall, we previously reported that between February 12 and 15, net capital inflows into spot bitcoin-ETFs totaled 43,300 BTC.
