Major U.S. banks and financial institutions are pressuring the U.S. Securities and Exchange Commission (#SEC) to revise the definition of cryptoassets. Their goal is to gain a more prominent position in the cryptocurrency sector.
On February 14, 2024, a coalition of trade groups drafted a letter to SEC head #Gary Gensler. The letter calls attention to the approval of spot bitcoin ETFs and emphasizes the lack of U.S. banks as custodians for these products.
"The Commission has approved 11 bitcoin ETFs, giving investors regulated access to this asset class. However, the banking organizations that typically serve as asset custodians for most other ETPs are absent.the letter states."the letter reads.
The coalition also urged the SEC to revise Accounting Bulletin 121, which provides guidance on accounting for custodial obligations for crypto assets.
They emphasized that two years have passed since the guidance was issued, and significant developments have occurred in that time. The current guidance requires banks to include crypto assets on their balance sheets.
Eric Balchunas, a senior analyst at Bloomberg, shared his opinion on the matter, stating:
"U.S. banks, left without a decisive role in the bitcoin-ETF, are pushing for the SEC to revise its guidance on holding digital assets. They want a share of the profits. That's fair."
It's important to note that between February 12 and February 15, net capital inflows into spot #bitcoin-ETFs totaled 43,300 BTC.
