SEC Chair Discusses Digital Asset Custody Structure for Cryptocurrencies Beyond Bitcoin and Ethereum ETFs

According to PANews, SEC Chair Gary Gensler has indicated that the digital asset custody structure proposed by BNY Mellon could be applicable to cryptocurrencies beyond Bitcoin and Ethereum ETFs. Gensler noted that BNY Mellon's proposed structure involves the use of individual crypto wallets, each linked to a separate bank account, and prohibits the commingling of these assets with the bank's own assets. Earlier this week, BNY Mellon acknowledged submitting a Bitcoin and Ethereum custody plan to the SEC's Chief Accountant's Office to safeguard customer funds in the event of the bank's insolvency. To date, the SEC has only approved ETFs for Bitcoin and Ethereum. Previously, BNY Mellon became the first bank to receive an exemption from the SEC's crypto accounting policy SAB 121.