- Michael Saylor hints that U.S. banks may soon offer Bitcoin custody services.
- BNY Mellon receives SEC exemption from controversial SAB 121 rule, signaling potential change.
- SEC’s SAB 121 faces criticism for hindering blockchain innovation, legal challenges ongoing.
Michael Saylor, CEO of MicroStrategy, recently hinted that major U.S. banks could soon be allowed to offer Bitcoin custody services. During a Wyoming Select Committee meeting on Blockchain Innovation, Saylor mentioned hearing “credible rumors” that at least one prominent U.S. bank will gain the authority to custody Bitcoin.
This potential development follows the Bank of New York Mellon (BNY Mellon) receiving an exemption from the SEC’s controversial SAB 121 rule.
The SEC’s SAB 121 rule has been a contentious issue within the cryptocurrency sector. The rule requires banks and financial institutions to account for digital assets held in custody as part of their own balance sheets.
This has sparked concerns among crypto advocates and lawmakers, arguing that it hampers blockchain innovation. Representative Ritchie Torres of New York (NY-15) opposed the rule, stating that it violates standard accounting practices and limits companies’ ability to explore blockchain technologies.
BNY Mellon’s recent exemption from the SAB 121 rule could signal a change in how financial institutions approach digital assets. With the possibility of major banks being granted the ability to custody Bitcoin, industry experts are watching closely to see if the rule’s strict requirements will eventually be rolled back or amended.
Despite criticism, SEC Chair Gary Gensler remains firm in defending SAB 121. Gensler and some anti-crypto lawmakers argue that safeguarding consumers and ensuring financial stability must remain priorities.
Gensler cites a series of high-profile bankruptcies within the cryptocurrency space as justification for its implementation.
In May, the Senate voted to reject the SEC’s guidance on SAB 121. While the vote marked a significant step for the cryptocurrency industry, it did not immediately lead to the repeal of the rule.
Saylor expressed optimism that the U.S. is becoming more receptive to Bitcoin, though the outcome remains uncertain as legal challenges continue.
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