BNY Mellon Gets Exemption From SEC's Controversial Crypto Custody Rule: Will It Challenge Coinbase's Hegemony In Holding Assets For Bitcoin And Ethereum ETFs?
Portfolio Pulse from Aniket Verma
BNY Mellon has received an exemption from the SEC's SAB 121 rule, allowing it to enter the cryptocurrency custody market without reflecting these assets on its balance sheet. This move could challenge Coinbase's dominance in holding assets for Bitcoin and Ethereum ETFs.
September 25, 2024 | 8:34 am
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POSITIVE IMPACT
BNY Mellon received an SEC exemption from the SAB 121 rule, allowing it to custody cryptocurrency assets without balance sheet reflection. This positions BNY to challenge Coinbase in the crypto custody market.
BNY Mellon's exemption from the SEC's SAB 121 rule allows it to enter the crypto custody market, potentially increasing its market share and revenue. This is a positive development for BNY as it can now compete with Coinbase in this growing sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
BNY Mellon's entry into the crypto custody market with an SEC exemption could challenge Coinbase's current dominance in holding assets for Bitcoin and Ethereum ETFs.
BNY Mellon's ability to custody crypto assets without balance sheet reflection could attract ETF clients, potentially reducing Coinbase's market share in the crypto custody space.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80