EddieJayonCrypto
12 Jul 24
The U.S. Securities and Exchange Commission (SEC) is allowing banks and brokerages to exclude customers' crypto holdings from their balance sheets, as long as they mitigate associated risks and enhance protection measures. This move comes amidst debate in Congress over controversial crypto-accountin...
The U.S. House continues to hold Biden's veto on the SAB 121 accounting rule, while the U.S. Securities and Exchange Commission (SEC) offers relaxation on crypto reporting for banks and brokerages.
The SEC is allowing banks and brokerages to exclude customers' crypto holdings from their balance sheets, provided they mitigate associated risks and enhance protection measures. This move follows debate in Congress over controversial crypto-accounting guidance and could benefit other crypto firms in the U.S.
The SEC's staff has provided guidance on arrangements that do not require reporting a liability of crypto holdings on balance sheets. The SEC demands additional measures from banks to enhance protection of these holdings, including internal safeguards. This decision may also be applicable to other crypto companies in the U.S. offering similar services to crypto holders.
Banks have successfully argued with the SEC staff in closed-door consultations that wallets and spot Bitcoin ETFs should be outside the scope of crypto guidance.