BNY Mellon has received an exemption from the SEC's Staff Accounting Bulletin 121, allowing the bank to get involved in the crypto custody business.
The exemption could pave the way for other financial institutions to explore similar opportunities.
BNY Mellon's entry into the digital asset custody sector requires approval from the Federal Reserve, with certain regulatory requirements still unclear.
The SEC's exemption has raised concerns of regulatory favoritism among other crypto firms.