US banking groups lobby SEC for rule change to enter Bitcoin ETF market
Summary
US banking groups are seeking inclusion in Bitcoin ETFs and have requested a rule change from the SEC to facilitate their participation. They argue that current regulations make it expensive for traditional banks to offer crypto custody services, hindering their ability to act as custodians for Bitcoin ETFs. The coalition also emphasizes the need to mitigate the concentration risk of a single non-bank entity dominating custodial services for these ETFs. They urge the SEC to refine the definition of crypto outlined in SAB 121 and exempt banks from on-balance sheet requirements while upholding disclosure obligations. Coinbase is mentioned as the largest US-based crypto trading platform serving as the asset custodian for 8 ETF issuers.
