BNY Mellon Calls For Rethinking Digital Asset Regulation

According to Odaily, Caroline Butler, the Global Head of Digital Assets at BNY Mellon, has recently advocated for a comprehensive reevaluation of digital asset regulation. She emphasized that blockchain and smart contracts should not merely enhance existing infrastructure by 20%. One of the initial actions by the new acting chair of the SEC was to revoke SAB 121, a move BNY Mellon has been lobbying for since its introduction. Butler believes that regulation should be reimagined around the future of capital markets, which will focus on wallet structures. She stated, "It should not conform to our current model, as wallets should encompass a variety of elements. This will disrupt the current model where institutions are more segmented by asset class. We should have a use-case-driven regulatory system that manages and focuses on wallets. I think this is a significant shift." Additionally, Nadine Chakar, Managing Director and Global Head of Digital Assets at DTCC, highlighted the need for a cultural shift within the market, given that companies are divided into fixed income and derivatives teams. She added, "While we are exploring disruptive technologies, I believe that innovation will be incremental for some time before the industry can truly thrive."