Wells Fargo, a prominent US banking institution, has recently disclosed that it is holding a Bitcoin ETF on behalf of its clients. The bank’s filing with the SEC reveals that it holds 2,245 shares of the Grayscale Bitcoin Trust (GBTC), which transitioned into an ETF earlier this year. The current value of these shares is $121,207, a small fraction of Wells Fargo’s $2 trillion assets under management. This news is significant as it highlights a departure from the traditional stance of banks, which have historically been resistant to providing exposure to the digital asset industry for their customers.

In a notable development, the US House of Representatives has passed a bill that seeks to overturn SEC guidelines that discourage banks from holding cryptocurrencies by requiring them to list these assets as liabilities on their balance sheets. The bill received support from both Republicans and Democrats, with 207 votes from Republicans and 21 votes from Democrats, ultimately passing with a majority of 228 votes to 182. Republican Representative Mike Flood, the author of the resolution, emphasizes that its purpose is to remove obstacles preventing regulated banks from acting as custodians of digital assets and protect consumers.

However, the Biden Administration has expressed its intention to veto the bill if it is approved by the Senate. The administration argues that the legislation could unduly restrict the SEC’s ability to establish appropriate regulations and address potential issues concerning crypto-assets and financial stability.

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