- Major US banks are lobbying the SEC to change crypto asset definitions so they can participate in Bitcoin ETFs by providing custody services without onerous accounting requirements.
- New research shows 51% and 34% attacks on Bitcoin and Ethereum networks are no longer viable options for nation-states, with attack costs estimated at over $20 billion and $34 billion respectively.
- The astronomical costs and unlikelihood of profit mean Bitcoin and Ethereum are now immune to ideological destruction attempts by governments.
Major US banks are asking the SEC to adjust its crypto asset definitions so they can participate in the Bitcoin ETF ecosystem. A coalition of banking trade groups sent a letter to SEC Chair Gary Gensler arguing that US banks have been excluded from acting as custodians for the newly approved spot Bitcoin ETFs, despite playing that role for other ETPs.
BTC ETF as a Catalyst
The coalition requested modifications to existing SEC guidance that requires banks to hold crypto assets on their balance sheets. They argue this is too costly and prevents them from providing crypto custody at scale. The groups asked the SEC to narrow the definition of “crypto assets” to exclude tokenized traditional assets, and to exempt banks from on-balance sheet requirements while maintaining disclosure rules.
The letter signals that banks want to join the crypto wave and see Bitcoin ETFs as a catalyst. Allowing banks to provide crypto custody without onerous accounting requirements could enable significantly more institutional participation.
