Major American banks are urging the Securities and Exchange Commission (SEC) to revise crypto asset custody rules so large financial players can store itcoin">Bitcoin for the recently launched spot exchange-traded funds (ETFs). The current guidance makes crypto custody expensive and hinders banking involvement.
In a letter, groups like the Bank Policy Institute argued U.S. banks are “notably absent” from approved itcoin">Bitcoin">itcoin">Bitcoin ETFs despite often serving as custodians for other investment products. They want updated rules excluding certain digital assets from strict requirements.
The lobbying effort comes as total inflows into new itcoin">Bitcoin ETFs surpass $4 billion. With crypto regulation softening, banks now want to capitalize on growing institutional demand. The push for compromise suggests the finance sector sees the inevitability of digital asset adoption.
As more traditional players like banks adapt to embrace crypto, expect clearer policy frameworks enabling further participation. Updated SEC guidance could pave the way for an influx of institutional crypto offerings – a sign of the asset class maturing within mainstream finance. The question now seems to be not if but how and when banks formally enter.
