LOL well have to agree with that. It does depend where the Bank is located or does business (In this case crypto-exchange). For example if Gemini tried to do the same thing with their customers ETH they would be subject to losing their bitcoin license.

"(c) Each Licensee is prohibited from selling, transferring, assigning, lending, hypothecating, pledging, or
otherwise using or encumbering assets, including Virtual Currency, stored, held, or maintained by, or under the
custody or control of, such Licensee on behalf of another Person except for the sale, transfer, or assignment of
such assets at the direction of such other Person."

Edit: No matter what you think of this type of regulation, it at least attempts to ensure ethical behaviour by the exchange. Perhaps this explains one of the reasons behind some exchanges not wanting to function in New York.