Bank of New York Mellon becomes the first bank to receive an exemption from the SEC's crypto accounting policy SAB 121

ChainCatcher news, according to Un Chained Crypto, during the public testimony of the Wyoming Blockchain, Financial Technology and Digital Innovation Special Committee, the largest custodian bank in the U.S., Bank of New York Mellon (BNY), was confirmed to have received an "exemption" from the U.S. Securities and Exchange Commission (SEC) SAB 121 accounting standards for its institutional cryptocurrency custody business.

U.S. Senator Cynthia Lummis (R-WY) Chief Legal Counsel Chris Land stated that the SEC and possibly other regulatory agencies have cleared the way for Bank of New York Mellon to provide institutional digital asset custody services. Land stated in the testimony: "Bank of New York Mellon is seeking to engage more deeply in the cryptocurrency custody business, and they have encountered some issues with Accounting Bulletin (SAB) 121, and the SEC has clearly granted them some kind of exemption so they can continue to move forward."

Previously, SEC Chief Accountant Paul Munter unexpectedly revealed in a speech that the agency had granted some SAB 121 exemptions, primarily finding that if certain conditions are met, the rule does not apply to certain entities. Munter stated that a bank, several brokerage firms, and other entities using blockchain to track and transfer traditional financial assets have received exemptions, but he did not specify the names of these entities.