BNY Mellon Reportedly Granted Relief from SEC's SAB 121 for Crypto Custody

BNY Mellon Reportedly Granted Relief from SEC's SAB 121 for Crypto Custody

BNY Mellon, one of the largest financial institutions in the United States, has reportedly secured a relief from the U.S. Securities and Exchange Commission's (SEC) Staff Accounting Bulletin 121 (SAB 121) guidance on crypto custody accounting. The development was shared during a meeting of the Wyoming Blockchain, Financial Technology and Digital Innovation Task Force. Testifying before the group, Chris Land, general counsel for pro-crypto Wyoming Senator Cynthia Lummis, said, "The SEC and other regulators have cleared the way for BNY to custody crypto for institutions," adding, "BNY has been interested in getting into the crypto custody business, and it looks like the SEC modified SAB 121 somewhat to allow them to do so." Relatedly, MicroStrategy founder Michael Saylor tweeted via X, "There are credible rumors that within the next few months one or more of the largest US banks will be authorized to custody #Bitcoin." The news has been welcomed by the crypto community, as it could pave the way for more institutional adoption of cryptocurrencies. BNY Mellon is one of the world's largest custodian banks, with over $40 trillion in assets under custody. Its entry into the crypto custody market would be a significant development for the industry.