Biden

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/sec-updates-reporting-rules-for-crypto-assets/" data-wpel-link="internal">SEC Updates Reporting Rules for Crypto Assets</a><br></p>
<p style="text-align: justify">The U.S. Securities and Exchange Commission (<strong>SEC</strong>) made a significant change regarding how banks and brokerage firms report their customers’ crypto assets. With this change, these financial institutions can avoid listing these assets on their balance sheets if they can mitigate the associated risks. According to Bloomberg, this step resulted from industry pressures and failed challenges to SEC’s two-year guidance in Congress. The timing of the change also signals a potential shift towards a crypto-friendly administration in the U.S.</p> 
<h2 style="text-align: justify" id="sab-121-and-new-regulations">SAB 121 and New Regulations</h2> 
<p style="text-align: justify">The SEC’s recent decision came despite Staff Accounting Bulletin No. 121 (SAB 121) issued in March 2022. This bulletin required companies to account for crypto assets as long-term intangible assets and subject them to regular impairment checks.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-369965 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/07/bitcoin-1.jpg" alt="" width="740" height="415"></p> 
<p style="text-align: justify">However, the SEC’s revised guidance provides a way for certain financial institutions to bypass these requirements. This exemption will depend on the institutions ensuring adequate protection of customer assets in the event of bankruptcy or failure.</p> 
<p style="text-align: justify">This change is of great importance to the crypto <a href="https://newslinker.co/category/science/space/" target="_blank" rel="noopener" data-wpel-link="exclude">space</a>. Previous accounting rules posed a barrier for banks due to the requirement to record cryptocurrencies as intangible fixed assets. Larger balance sheets triggered higher capital requirements, making it difficult for these institutions to enter the <a href="https://en.coin-turk.com/south-korea-intensifies-regulation-of-cryptocurrency-exchanges/" data-wpel-link="internal">crypto market</a>. The SEC’s updated stance may increase the number of companies offering crypto services as they will no longer face the same accounting and capital hurdles.</p> 
<h2 style="text-align: justify" id="legislative-efforts-and-industry-reactions">Legislative Efforts and Industry Reactions</h2> 
<p style="text-align: justify">Legislative efforts to reverse SAB 121 achieved mixed success. Both the House of Representatives and the Senate voted to repeal the guidance. However, President Biden vetoed the decision. Despite this, the SEC continued to work with the industry to improve its guidance, reflecting its willingness to adapt to evolving <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market conditions</a> and feedback from the sector.</p> 
<p style="text-align: justify">Reactions from the industry to this development were varied. Eleanor Terrett from Fox questioned whether this move indicated the SEC’s acknowledgment of the need to relax <strong>SAB 121</strong> requirements for banks and brokerage firms.</p> 
<p style="text-align: justify">Terrett also speculated that this could be a response to Congressional pressure for change. The initial issuance of SAB 121 aimed to inform investors about the technological and legal risks associated with cryptocurrencies, especially following events like the FTX collapse.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/sec-updates-reporting-rules-for-crypto-assets/" data-wpel-link="internal">SEC Updates Reporting Rules for Crypto Assets</a></h5>

SEC Updates Reporting Rules for Crypto Assets

Table of Contents

COINTURK NEWS

Other articles published on Jul 12, 2024

Tyler Hill’s Exclusive Outlook: BlockDAG’s Keynote & X1 Miner App Unveiled! OKB and STX Price Ins...

Top Crypto Airdrop Alerts

US Congress Unites Against AI Deepfake: Watermarking To The Rescue

Token Unlocks Impact Cryptocurrency Market Prices

Is the Bitcoin Mining Industry Massively Undervalued?

Animoca Brands Enhances Blockchain Role

Join our free newsletter for daily crypto updates!