SEC Eases Crypto Reporting Rules For Banks And Brokerages
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 (SEC) has eased requirements, that previously mandated banks and brokerages 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.
The SEC presented the guidance in 2022 a few months before the FTX crypto exchange went bankrupt, 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 voted on a resolution to nullify a guideline from the SEC that has been a barrier for banks wishing to engage in crypto custody services. The House resolution sought 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 faced a presidential veto. The House attempted to override the veto but failed to secure the necessary votes, leaving the SEC’s guideline in place.
Ether Surges 16% Amid Speculation Of US ETF Approval
New York, USA – Ether, the second-largest cryptocurrency by market capitalization, experienced a significant surge of ... Read more
BlackRock And The Institutional Embrace Of Bitcoin
BlackRock’s strategic shift towards becoming the world’s largest Bitcoin fund marks a pivotal moment in the financia... Read more
Robinhood Faces Regulatory Scrutiny: SEC Threatens Lawsuit Over Crypto Business
Robinhood, the prominent retail brokerage platform, finds itself in the regulatory spotlight as the Securities and Excha... Read more
Ethereum Lags Behind Bitcoin But Is Expected To Reach $14K, Boosting RCOF To New High
Ethereum struggles to keep up with Bitcoin, but experts predict a rise to $14K, driving RCOF to new highs with AI tools.... Read more
Ripple Mints Another $10.5M RLUSD, Launch This Month?
Ripple has made notable progress in the rollout of its stablecoin, RLUSD, with a recent minting of 10.5… Read more
Bitcoin Miner MARA Acquires Another $551M BTC, Whats Next?
Bitcoin mining firm Marathon Digital Holdings (MARA) has announced a significant milestone in its BTC acquisition strate... Read more