BNY Mellon: “clear regulation of cryptocurrencies will make it easier for banks in the industry”

The management of the New York bank BNY Mellon called on US regulators to clarify the rules for overseeing the cryptocurrency industry in order to greatly simplify the work of banks with digital assets.

BNY Mellon CFO Emily Portney said the bank is partnering with custodial company Fireblocks to secure crypto assets. Additionally, in July, BNY Mellon partnered with Pure Digital, a cryptocurrency trading platform targeted at banks and financial institutions.

Portney suggested that in the coming years, the bank’s revenue from providing crypto-currency services to institutional clients will only grow. However, U.S. regulators need to flesh out the rules for overseeing digital assets, as uncertainty in their regulation creates confusion.

Cryptocurrency issuers, banks and organizations do not understand what activities with cryptocurrencies are allowed for them, and what actions they can violate the laws.

“We hope that regulators will provide more clarity on digital assets. It is not clear who regulates cryptocurrencies and what can be done with them. It’s confusing,” Portney said.

She believes that the US government should not postpone the development of regulation “in the back box.” As the cryptocurrency space develops, more and more banks and financial institutions are showing interest in it. However, they are forced to refrain from launching new products and expanding existing offerings until specifics are made to the rules.

Last year, BNY Mellon approached the Irish government with a similar request – not to wait for the EU to provide guidance to regulate the industry, but to start developing its own rules.