Bank

Secret

Coin

<ul class="news-points">
 <li>The SEC reportedly exempted certain banks from the controversial SAB 121 crypto custody disclosure requirements.</li>
 <li>SAB 121 has been criticized for disrupting banks’ balance sheets.</li>
 <li>President Biden’s veto stood despite bipartisan congressional efforts to overturn SAB 121.</li>
</ul>
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, such as JP Morgan Chase, Bank of New York Mellon, and Citi, to disclose their crypto custody services. Critics, including crypto enthusiast Gyges, argue that this requirement negatively impacts banks’ balance sheets and risk management, effectively hindering their ability to offer crypto custody services. This, they claim, leaves crypto users worse off and represents poor policy-making.
According to a <a href="https://news.bloomberglaw.com/securities-law/sec-allows-some-exceptions-to-crypto-accounting-rule-compliance" target="_blank" rel="noopener noreferrer nofollow">Bloomberg article</a>, an unnamed SEC source revealed that an exemption was granted to banks that have demonstrated safe custodial practices. Gyges took to X (formerly Twitter) to express his disapproval of the SEC’s reported action.
He ar…
The post <a href="https://coinedition.com/secs-secret-bank-exemptions-for-crypto-custody-favoritism-or-risk-management/" rel="noopener noreferrer nofollow">SEC’s Secret Bank Exemptions for Crypto Custody: Favoritism or Risk Management?</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

SEC’s Secret Bank Exemptions for Crypto Custody: Favoritism or Risk Management?

Coin Edition

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