EddieJayonCrypto
12 Jul 24
The SEC has reportedly exempted certain banks from the controversial SAB 121 crypto custody disclosure requirements, criticized for disrupting banks' balance sheets. President Biden's veto stood despite bipartisan congressional efforts to overturn SAB 121. The exemption, granted to banks with safe c...
The U.S. Securities and Exchange Commission (SEC) has reportedly exempted certain banks from mandatory disclosure requirements under Staff Accounting Bulletin No. 121 (SAB 121), a controversial crypto banking regulation. SAB 121 requires publicly traded banks to disclose their crypto custody services, leading to criticism that it negatively impacts banks' balance sheets and risk management, hindering their ability to offer crypto custody services.
An exemption was granted to banks that have demonstrated safe custodial practices, sparking criticism from crypto enthusiast Gyges. He argued that the decision favors certain institutions based on connections rather than merit, highlighting what he sees as the SEC's "worst practices" under Chair Gary Gensler's leadership.
Gyges further noted that the SEC may not have fully understood the implications of SAB 121 on banks when the regulation was introduced. Both Houses of Congress voted to overturn the regulation on a bipartisan basis, but President Biden's veto has drawn widespread criticism. The recent attempt to override the veto fell short of the required two-thirds majority.