Major banks and financial institutions in the United States are pressuring the United States Securities and Exchange Commission (SEC) to readjust the guidelines that prevent them from offering cryptocurrency services to their customers.
The request was made through a sent to the Securities and Exchange Commission (SEC), signed by the Banking Policy Institute, the American Bankers Association, the Financial Services Forum and the Securities and Markets Industry Association Financial.
In the letter, the organizations request the SEC to make modifications to Staff Accounting Bulletin 121 (SAB 121), issued in March 2022, which provides guidance on the obligations to be met for the custody of cryptoassets.
They assure that two years have passed since the issuance of the guide, and that there have been "several relevant developments" during this period, including the approval of exchange-traded funds or spot bitcoin ETFs. A development from which they have been excluded due to these regulations.
They refer in particular to the rules that force them to include the cryptocurrencies they own in their list of liabilities, which makes the offer of custody services for this type of assets onerous.
Consequently, they request to exempt banks from balance sheet requirements, but maintain disclosure requirements. This would allow them to participate in certain activities linked to cryptocurrencies, "while still providing transparency to investors."
They also request a readjustment of the definition of cryptoassets , which could allow them to act as custodians of bitcoin ETFs. This is a task that they have traditionally carried out with this type of products, but that in the case of BTC they could not undertake.
The Commission recently approved 11 Bitcoin spot ETFs, allowing investors to access this asset class through a regulated product. However, banking organizations that act as asset custodians are notably absent from those approved products, a role they regularly play for most other ETFs.
Excerpt from the bankers' letter to the SEC.
Everything seems to indicate that banks are adding to the FOMO generated by ETFs. Something that has caught the attention of members of the ecosystem who have commented on the topic in X.
Bankers are getting angry at not being able to hold spot Bitcoin ETFs for their clients. The Q1 FOMO is already driving them crazy,” commented the author of the weekly newsletter TheBitcoin Therapist jokingly. Matt Hougan, co-founder of Bitwise, saw the bankers' request as an answer to the question of whether bitcoin ETFs were going to change the tone on cryptocurrency regulation in Washington.
This is a trend that has been accelerating in recent years. The list of banking institutions that offer services with bitcoin is on the rise. This is due, in large part, to the rise of institutional investment.
However, the bankers' request occurs in a context where at least two banks have decided to withdraw their cryptocurrency services in the United States.
