SEC Introduces SAB 122, Easing Crypto Custody Rules for Banks
The SEC has released Staff Accounting Bulletin (SAB) No. 122, repealing SAB 121. This change allows banks and financial institutions to offer crypto services more easily.
- Under SAB 121, banks had to list customer crypto-assets as both assets and liabilities.
- SAB 122 allows banks to treat risks like theft or fraud as contingent liabilities.
- This simplifies compliance and reduces capital requirements for custody of digital assets.
- Commissioner Hester Peirce and ETF analyst James Seyffart praised the decision.
- The policy indicates a more pro-crypto approach from US regulators.
- The new guidance facilitates broader participation of traditional financial institutions in the crypto market.
The SEC also announced a crypto task force led by Hester Peirce, signaling a focus on growth in the sector. Recent actions, including an executive order for a national digital asset stockpile, reflect a trend toward integrating crypto into the US financial system.
SAB 122 marks a significant step forward for crypto adoption in the United States.