US banks want to enter the cryptocurrency market

The largest banks in the US are pressuring the US Securities and Exchange Commission (SEC) to prepare a new definition of cryptocurrency assets, which could allow them to play a greater role in the market, for example, of Bitcoin ETFs.

US banks want to enter the cryptocurrency market. The letter to the SEC suggests this

On February 14, a coalition of industry groups consisting of the Bank Policy Institute, the American Bankers Association, the Financial Services Forum and the Securities Industry and Financial Markets Association appealed to SEC Chairman Gary Gensler. In the letter to him, she emphasized the fact that BTC ETFs were approved at the beginning of the year.

The Commission recently approved 11 spot Bitcoin ETPs, allowing investors to access the asset class through a regulated product

– we read in the letter to Gensler.

It added that, however, there are no “banking organizations on the market acting as custodian of assets (BTC ETFs), which they regularly perform for most ETPs.”

The letter asked the SEC to consider modifying the regulations, which would allow banks to enter the bitcoin ETF market. Coalition members said that two years have passed since the last guidelines were issued, but during this period there have been “several significant changes” regarding bitcoin's position on the market.

In practice, the group asked the SEC to narrow the definition of cryptocurrency assets in a way that would make it easier for banks to enter this market.

ETFs changed everything

In a post on X, Bitwise chief investment officer Matt Hougan wrote that the letter to Gensler suggests that bitcoin ETFs have changed “the tone around cryptocurrency regulation in Washington.” Other BTC fans commented on his post, suggesting that it was a clear sign that banks were signaling interest in joining the “digital finance market.”

And in fact, ETFs mean that more people may consider bitcoin to be a safer investment than previously thought. This may further fuel demand for cryptocurrencies.