A group of US banks have written to the Securities and Exchange Commission to revise crypto asset rules for banks with the changing crypto scenario with the spot Bitcoin ETFs.
A group of trade associations of the financial services industry in the US recently wrote to the SEC regarding crypto asset rules. The lobby groups included the American Bankers Association, the Bank Policy Institute, and two others. The bank groups explained the reasons why crypto asset rules for US banks needed changes.
The letter portrayed the changes in the crypto landscape after the spot Bitcoin ETFs. Hence, the lobby forums requesting a change in crypto guidelines, specifically in the definition of digital assets. Amended crypto guidelines could help them assume a bigger role in the crypto industry, the letter said. The letter also pointed out how banks were absent from the spot Bitcoin ETFs as asset custodians.
The letter said, “The Commission recently approved 11 Spot Bitcoin ETPs, allowing investors access to this asset class through a regulated product. However, notably absent from those approved products are banking organizations serving as the asset custodian, a role they regularly play for most other ETPs.”
Further, they requested a change in accounting rules for crypto assets through modifications in the Staff Accounting Bulletin 121. With the current rules, US banks are unable to provide custody services at scale. It occurs mainly due to a rule that enforces them to hold crypto assets in their balance sheets.
The letter also included requests for narrowing the definition of crypto assets. Banks would continue to be transparent for their users with disclosure requirements, affirmed the letter.
US crypto regulation has seen multiple developments recently with the spot Bitcoin ETF approvals. It could pick up pace this year as the ETFs continue to gain popularity.
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