US SEC Reportedly Unwilling to Grant Banks Crypto Custody Authority
CryptoNewsTerminal Staff10 Sep, 2024
US SEC Reportedly Unwilling to Grant Banks Crypto Custody Authority
The US Securities and Exchange Commission (SEC) has reportedly expressed reluctance in allowing regulated financial institutions to have direct custody of crypto assets, according to Nate Geraci, CEO of ETF Store. The SEC reportedly prefers financial institutions to utilize qualified custodians with a public offering (IPO) for crypto custody. Furthermore, the SEC has reportedly taken legal action against companies to compel them to hold their bitcoin futures ETFs rather than spot BTC. However, in July, the SEC reportedly offered a temporary workaround, allowing companies and financial institutions to deviate from the controversial crypto accounting guidance.
