New SEC Rule Opens Door for Banks to Offer Crypto Services
The post New SEC Rule Opens Door for Banks to Offer Crypto Services appeared on BitcoinEthereumNews.com.
The U.S. Securities and Exchange Commission (SEC) has revised its controversial Staff Accounting Bulletin No. 121 (SAB 121), days after the agency formed the New Crypto Task Force, a move that is expected to facilitate cryptocurrency adoption by traditional banking institutions. The previous guidance required firms to recognize customers’ crypto holdings as liabilities on their balance sheets, which attracted strong criticism from the digital asset industry. However, the latest revision removes this requirement. Simply put, the revision will make it easier for banks to offer cryptocurrency exposure to their clients. Bye, bye SAB 121! It’s not been fun: https://t.co/cIwUc0isUE | Staff Accounting Bulletin No. 122 — Hester Peirce (@HesterPeirce) January 23, 2025 Under the new framework, financial institutions no longer have to list customer crypto holdings as part of their assets and liabilities. However, the SEC mandates that firms must still report any risks associated with these holdings if adverse events take place. SEC’s New Approach To Deal With Crypto Services According to the SEC’s official statement: “The staff reminds entities that they should continue to consider existing requirements to provide disclosures that allow investors to understand an entity’s obligation to safeguard crypto-assets held for others.” The SEC’s policy revision is likely to fuel optimism in the crypto markets. By making it easier for banks to offer cryptocurrency-related services. The decision could trigger a surge in institutional adoption and trigger a massive rally in the crypto market. Over the past few years, major financial institutions have expanded their crypto offerings in response to growing client demand. Adding to the bullish sentiment, U.S. President Donald Trump recently signed an executive order directing federal agencies to create a national digital asset stockpile. Also Read: Donald Trump Signs Executive Order to Advance Crypto and Creation of Digital Asset Stockpile Source: https://www.cryptonewsz.com/sec-new-rule-banks-to-offer-crypto-services/
Filed under: News - @ January 24, 2025 10:18 pm