- Financial Institutions FOMO: Major U.S. banks express interest in becoming custodians for spot Bitcoin ETFs.
- SEC Petition: Coalition of trade groups urges SEC Chair Gary Gensler to revise crypto asset definitions, emphasizing banks’ exclusion from Bitcoin ETF custodianship.
- Guidance Modification: Request to revisit and modify Staff Accounting Bulletin 121 (SAB 121) to ease on-balance sheet requirements for digital assets held by banks.
- FOMO Impact: The push for involvement in the growing crypto market signifies a shift in Washington’s tone on crypto regulation.
Banks Petition SEC for Crypto Revisions
Financial institutions, led by the Bank Policy Institute and others, are lobbying the SEC for a pivotal role in the rapidly expanding market of spot Bitcoin ETFs. A letter sent to SEC Chair Gary Gensler highlights the absence of U.S. banks as custodians for these ETFs, calling for a reevaluation of crypto asset definitions. The coalition emphasizes the need to modify Staff Accounting Bulletin 121, issued in 2022, to alleviate on-balance sheet requirements for digital assets.
FOMO Grapples Banks with Crypto ETFs’ Exclusion
In a noteworthy development, major banks are grappling with a fear of missing out (FOMO) as they observe the surge in spot Bitcoin ETFs. Bitwise’s CIO, Matt Hougan, notes a significant shift in Washington’s attitude towards crypto regulation. However, the Q1 FOMO is pressuring banks unable to hold BTC ETFs for their clients, signaling a growing desire to participate in the digital financial wave.