BNY launched Tuesday that the SEC’s Sigh of job of the Chief Accountant (OCA) had no objection to the financial institution not following the agency’s SAB 121 accounting steerage namely for custodying crypto sources for alternate-traded products (ETPs). SAB 121 on the total requires entities custodying such sources to checklist them as liabilities on their balance sheet, a pricey requirement that has been heavily criticized by the crypto industry.

Unchained confirmed final week that BNY, the absolute best custodian financial institution in the enviornment, had been cleared to custody crypto after receiving a “variance” exempting it from the SAB 121 rule. On Tuesday, BNY detailed that its session with the SEC resulted in a non-objection to the financial institution’s resolution that the safeguarding of crypto sources for its regulated alternate-traded product customers shouldn’t be identified on BNY’s balance sheet.

As a outcomes of the SEC’s non-objection, BNY is now closer to rolling out custody products and services for bitcoin and ether ETPs. The financial institution famed that it already helps 80% of SEC-authorized bitcoin and ether crypto-asset alternate-traded products (ETPs) in its fund products and services commerce, so offering custody is a natural subsequent step in the financial institution’s strategic plans for digital sources.

Learn more: In the Ongoing SAB 121 Wrestle, Here’s How Crypto Can Slump Ahead With Bipartisan Relief

BNY specified, nevertheless, that the SEC’s non-objection is little to 1 bid case for the financial institution—custody for registered crypto-asset ETPs. Therefore, the resolution “would not resolve the subject of SAB 121 successfully proscribing financial institution custody of digital sources,” BNY talked about, adding that it plans to continue discussing extra bid cases with the SEC.

Other unnamed banks and dealer sellers grasp additionally got non objections from the SEC, per a Bloomberg document.

Since launching earlier this yr, save bitcoin alternate-traded funds (ETFs) grasp attracted shut to $60 billion in sources, whereas save ether ETFs grasp amassed more than $7 billion, highlighting the quite a bit of alternatives for financial companies to custody these sources.

Coinbase Custody is the custodian for 8 of the 11 save bitcoin ETFs, per Coinbase’s net pages.