Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»ADOPTION NEWS»Major Banking and Finance Associations Urge SEC to Amend SAB 121 on Digital Asset Custody
ADOPTION NEWS

Major Banking and Finance Associations Urge SEC to Amend SAB 121 on Digital Asset Custody

By Crypto FlexsFebruary 16, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Major Banking and Finance Associations Urge SEC to Amend SAB 121 on Digital Asset Custody
Share
Facebook Twitter LinkedIn Pinterest Email

The Bank Policy Institute, American Bankers Association, Financial Services Forum, and SIFMA issued Staff Accounting Bulletin No. 1 to address digital asset custody issues for U.S. banking organizations. Requested modification of 121. The aim is to align provisions with recent policy developments and practical experience.

On February 14, 2024, the Banking Policy Institute (BPI), the American Bankers Association (ABA), the Financial Services Forum (Forum), and the Securities Industry and Financial Markets Association (SIFMA) jointly sent a letter to Chairman Gary Gensler. U.S. Securities and Exchange Commission (SEC). They are published in Staff Accounting Bulletin No. 31, March 2022. Requested the SEC to consider revising its objectives for Sec. 121 (SAB 121) to alleviate the challenges posed to U.S. banking organizations that store digital assets. As SAB 121 approaches two years since publication, these associations aim to align its provisions with recent policy developments and the practical experience of regulated banking organizations without compromising the original policy objective of improving investor information.

The Banking and Finance Association clarifies concerns and provides recommendations to improve SAB 121 to promote responsible innovation while ensuring investor protection and market integrity. They argue that the on-balance sheet requirements to secure cryptocurrency assets have made it impossible for banking organizations to effectively provide digital asset management at scale. These limitations, combined with the broad definition of “cryptoassets,” have hindered the development of DLT applications. cryptocurrency.

The letter cites the SEC’s recent approval of the Spot Bitcoin ETP and the proposed rule on the Safeguarding of Advisory Client Assets that addresses the custody of digital assets as developments warranting a reassessment of SAB 121. They highlight that the current regulations provide for digital asset custody services to non-bank organizations. A similar lack of regulatory oversight of financial institutions could potentially compromise the safety and stability of the financial system.

To alleviate these issues, the Association recommends narrowing the definition of “crypto assets” to exclude traditional financial assets recorded or transferred using DLT and exempt banking organizations from balance sheet treatment while maintaining disclosure requirements. They believe that this alignment will allow banking organizations to contribute to the digital asset ecosystem without unnecessary regulatory burden.

The Banking and Finance Association requested a meeting with the SEC to discuss proposed amendments to SAB 121, emphasizing its willingness to cooperate with the Commission. This highlights the importance of reflecting the objectives of SAB 121 in light of technological developments and policy developments since its publication.

Image source: Shutterstock

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ether Lee (ETH) tests major support for $ 4,453 after the highest rejection.

August 31, 2025

Bitcoin analysts bet on $ 200K after hints of Fed.

August 23, 2025

‘Self -transactions, dressed in capital layout’: The cryptocurrency financial craze divides the industry.

August 15, 2025
Add A Comment

Comments are closed.

Recent Posts

TRX Was Early, ETH Set The Standard, BNB Built The Scale- Now SYC Brings The Next Evolution

September 4, 2025

Sign Up And Receive $500 Bonus, Ushering In A New Era Of Compliant And Secure Crypto Investment

September 4, 2025

Why experts say that 99%of the traders are wrong

September 4, 2025

ChainUp Named Double Finalist At Thomson Reuters’ ALB Pan-Asian Regulatory Awards 2025

September 4, 2025

Integrated security classes can accelerate the adoption of institutional passwords.

September 4, 2025

Binance explodes 466m LUNC with oblivion: revival play or special effect?

September 4, 2025

Cardano founder says Chainlink quotes ‘ridiculous price’ to them.

September 3, 2025

Acurast launches ‘Staked Compute’ and challenges AWS, Azure and Google Cloud using the distributed smartphone network.

September 3, 2025

Solana-packee blockchain manually spreads

September 3, 2025

Bybit Card Launches In Europe With Unmatched 20% Cashback

September 3, 2025

GiftlyCard.com Recognized As Verified And Secure By Independent Review Sites

September 3, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

TRX Was Early, ETH Set The Standard, BNB Built The Scale- Now SYC Brings The Next Evolution

September 4, 2025

Sign Up And Receive $500 Bonus, Ushering In A New Era Of Compliant And Secure Crypto Investment

September 4, 2025

Why experts say that 99%of the traders are wrong

September 4, 2025
Most Popular

The STGENERGY’s Super Cloud Computing feature allows you to earn at least $ 9,850 a day by guiding the cloud mining era.

February 26, 2025

SEC Chairman Gary Gensler Comments on X Account Hack and Security Measures

February 13, 2024

Hodler’s Digest, December 1 – 7 – Cointelegraph Magazine

December 7, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.