If you want to keep up with the latest news, subscribe to our Telegram channel. Major US banks want the Securities and Exchange Commission (SEC) to change the rules so that they can hold digital assets on behalf of Bitcoin ETF customers.
In a letter dated February 14, a few driving monetary firms in the US encouraged the SEC Seat, Gary Gensler, to change the meaning of crypto resources. Doing so will permit these organizations to wander further into the crypto business as overseers for computerized resources.
US Banks Whine Of Passing up Spot Bitcoin ETFs
The letter said that US banks are passing up care business from the as of late supported spot Bitcoin trade exchanged reserves (ETFs).
The March 2022 guidance contained in Staff Accounting Bulletin 121 (SAB 121) prohibits banks from acting as asset custodians for Bitcoin ETFs.
The SAB 121 rule commands banks to hold digital currencies on their accounting report. Doing this is a costly undertaking and keeps banks from investigating crypto resource care.
The banks presently maintain that the SEC should think about changes to the rules. They demand that banks be excluded from holding crypto on their accounting reports. All things being equal, the SEC ought to expect them to offer divulgences while taking part in crypto exercises to keep up with straightforwardness, the letter said.
The banks additionally said SAB 121 rules were obsolete as they were formed before the endorsement of spot Bitcoin ETFs.
The ETFS offered by BlackRock and Fidelity attracted more assets during their first month of trading than any other ETF launched in the US in the last three decades. Since their launch, Bitcoin ETFs have reached positive net flows of $4.5 billion.