Bitcoin

Read

The SEC has provided new guidance allowing banks to avoid reporting customers’ crypto funds on their balance sheets if they implement measures to mitigate associated risks. 
The U.S. Securities and Exchange Commission (<a href="https://crypto.news/tag/sec/" target="_blank" rel="noreferrer noopener">SEC</a>) has eased requirements, that previously mandated <a href="https://crypto.news/tag/banking/" target="_blank" rel="noreferrer noopener">banks and brokerages</a> to report customers’ crypto holdings on their balance sheets, provided they implement measures to mitigate associated risks. 
According to a Bloomberg report, SEC staff have begun offering guidance indicating that certain arrangements might not require reporting liabilities on the balance sheet. Sources close to the regulator’s approach say that some large financial lenders that have previously consulted with the SEC on the matter got the green light to bypass the balance sheet reporting. 
Now, they have to ensure their customers’ assets can be protected in the event of bankruptcy or failure. 
 You might also like: <a href="https://crypto.news/european-banking-authority-issues-additional-crypto-guidelines/"> European Banking Authority issues additional crypto guidelines </a> 
The SEC presented the guidance in 2022 a few months before the FTX crypto exchange <a href="https://crypto.news/ftx-saga-what-happened-to-ftx/" target="_blank" rel="noreferrer noopener">went bankrupt</a>, telling banks that the measures were needed to inform investors about risks associated with the crypto market. However, financial lenders argued that wallets and spot Bitcoin exchange-traded products should be outside the scope of the crypto guidance, Bloomberg says, citing sources close to the SEC. 
In early March, the House Financial Services Committee <a href="https://crypto.news/us-house-committee-moves-to-overturn-sec-rule-limiting-bank-crypto-custody/" target="_blank" rel="noreferrer noopener">voted on a resolution</a> to nullify a guideline from the SEC that has been a barrier for banks wishing to engage in crypto custody services. The House resolution <a href="https://crypto.news/u-s-house-vote-to-overturn-bidens-sab-121-veto-set-for-wednesday/" target="_blank" rel="noreferrer noopener">sought</a> to revoke the SEC’s Staff Accounting Bulletin 121, which required banks to report their customers’ crypto holdings on their balance sheets, leading to increased capital requirements and deterring banks from offering crypto services. 
Although the House passed the resolution, it eventually <a href="https://crypto.news/us-house-fails-to-override-bidens-veto-of-sab-121-resolution/" target="_blank" rel="noreferrer noopener">faced</a> a presidential veto. The House attempted to override the veto but failed to secure the necessary votes, leaving the SEC’s guideline in place. 
 Read more: <a href="https://crypto.news/italy-teases-selective-implementation-of-mica-guidelines-report/"> Italy teases selective implementation of MiCA guidelines: report </a>

SEC eases crypto reporting rules for banks and brokerages

crypto.news

Other articles published on Jul 12, 2024

Cardano Investors Celebrate Price Surge

Bitcoin mining causing health issues in Texas residents

Best Airdrops for Passive Income 2024

Crypto Expert Posts $17 XRP Prediction, Polkadot Ecosystem Surges, Rollblock Becoming Fastest-Gro...

Free Crypto Tokens: Best Picks

Following Coinbase And Stripe Deal, Fiat-To-Crypto Payments Players See Big Future

Join our free newsletter for daily crypto updates!