sab-121

ChainCatcher news, a letter signed by 42 Republican lawmakers led by House Financial Services Committee Chairman Patrick McHenry and Senator Cynthia Lummis, strongly urges the Chairman of the Securities and Exchange Commission (SEC) Gary Gensler to repeal the controversial cryptocurrency accounting rule SAB-121.The letter points out that the rule undermines the custody standards for cryptocurrencies, not only weakening consumer protection but also stifling financial innovation. They specifically emphasize that SAB-121 was issued without consulting any "prudent regulatory agency," and its accounting methods deviate significantly from established accounting standards. "The vote in both chambers on H.J. Res. 109 sent a clear message to the SEC. It is inappropriate to implement policy changes through the issuance of staff guidance, which violates the spirit and letter of the Administrative Procedure Act."

ChainCatcher news, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) seems to have made concessions in its proposed crypto accounting policy SAB 121.According to an analysis by Galaxy's research director, the SEC's chief accountant Paul Munter has proposed some exemptions that allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121.If banks obtain written permission from state regulators to custody customer assets in a bankruptcy-remote manner, clearly specify standards in contracts, and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121. Introducing brokers can also be exempt from SAB-121 requirements by meeting three conditions. Brokers cannot hold customers' private keys, cannot act as a third party or agent for introducing brokers in transactions. Introducing brokers must obtain a legal opinion stating that they qualify as introducing brokers under the digital asset exemption conditions.