In a recent statement reported by PANews, SEC Chair Gary Gensler highlighted the potential for BNY Mellon’s proposed digital asset custody structure to extend to cryptocurrencies beyond just Bitcoin and Ethereum ETFs. Gensler explained that the structure involves utilizing individual crypto wallets, each associated with a separate bank account, which prevents the commingling of these assets with the bank’s own holdings.

Earlier this week, BNY Mellon confirmed that it has submitted a custody plan for Bitcoin and Ethereum to the SEC’s Chief Accountant’s Office, aimed at ensuring customer funds are protected in the event of the bank’s insolvency. So far, the SEC has only granted approval for ETFs specifically related to Bitcoin and Ethereum.

Notably, BNY Mellon was the first bank to receive an exemption from the SEC’s crypto accounting policy known as SAB 121, further establishing its position in the evolving landscape of digital asset custody. Gensler’s comments suggest that the regulatory framework may soon encompass a broader range of cryptocurrencies, reflecting the SEC’s ongoing efforts to adapt to the rapidly changing digital asset market.