Almost two years ago, the Securities and Exchange Commission (SEC) introduced Staff Accounting Bulletin (SAB 121) relating to digital asset custody. It requires assets to appear on the custodian’s balance sheet, a very unorthodox accounting treatment. Now major banking and securities industry bodies – ABA, SIFMA, BPI and FSF * – have written a letter to the SEC. They’re asking for amendments to the bulletin’s requirements.
They request that the rule not cover all crypto-assets and ask for it to exclude use cases that combine DLT and traditional assets. In other words, they want digital securities excluded, even if cryptocurrencies stay in.
“SAB 121 will have a chilling effect on banking organizations’ ability to develop responsible use cases for distributed ledger technology (DLT) more broadly,” the letter states.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
