U.S. Banks Seek Rule Changes For Bitcoin ETF Inclusion

U.S. banking groups seek entry into Bitcoin spot ETFs, urging SEC for a rule change for participation in the market. Several prominent U.S. banking groups are actively pursuing entry into the Bitcoin Exchange-Traded Funds (ETFs) landscape, prompting a collective plea for a rule change to facilitate their participation in the bitcoin spot ETFs space.

On February 14, a coalition of influential trade groups, including the Bank Policy Institute, the American Bankers Association, the Securities Industry and Financial Markets Association, and the Financial Services Forum, submitted a letter to the Securities and Exchange Commission (SEC) advocating for specific modifications.

At the heart of the matter lies the SEC’s current accounting guidance, which directs public companies, including banks, to treat digital assets they custody as liabilities on their balance sheets. This suggests that banks should allocate assets in proportion to their digital asset holdings. ..Story continues…