The American Securities Commission (SEC) has just announced an employee accounting notice (SAB) No. 122, canceling the previous instructions according to SAB 121, which does not encourage banks to hold Bitcoin in their management rights .
This means that traditional banks and financial institutions can now provide cryptocurrency services without many significant legal barriers.
US Bank can monitor Bitcoin
SAB 121 requires companies to keep cryptocurrencies for their customers (such as exchanges) to recognize both assets and liabilities for those holders on the balance sheet.
Now, companies can assess the obligation to protect these assets different, namely through potential liabilities, such as losses may occur due to theft or fraud.
“Goodbye SAB 121! Not an interesting journey | Staff notice of staff No. 122, ”Commissioner SEC Hester Peirce write On X (former is Twitter).
Simple to say, SAB 122 Eliminate rigid requirements forcing the bank to record customers’ cryptocurrency assets such as Bitcoin is a liabilities on the balance sheet.
This change simplifies compliance, reduces the financial burden and capital requirements that have previously been related to the right to manage cryptocurrencies according to SAB 121.
“No even executive command! Thank you Hester Peirce and President Uyeda! This is the right decision, ”ETF analyst James Seyffart write.
Overall, new guidelines allow more banks to provide Bitcoin monitoring services safely and effectively because they only need to take into account the likely losses such as hidden liabilities.
The bank can now hold and protect cryptocurrencies for customers in the way they see appropriate. Companies have the freedom to decide whether they need to accept liabilities to protect the risk or not and how to measure it.
Electronic cash specifications in the United States are changing
The electronic community is very excited about this news. For many years, US banks wanted to monitor Bitcoin but could not. Microel Saylor of MicroStrategy also share My excitement online. In May 2024, both the House of Representatives and the Senate passed a resolution to abolish SAB 121. However, President Joe Biden rejected this resolution.
This decision came after the SEC established a special forces on cryptocurrency led by Hester Peirce yesterday. The Government has issued a series of statements that support cryptocurrencies today. Earlier, President Trump signed the first executive command involving cryptocurrencies, suggesting that the United States should set up a warehouse of digital property storage.
Overall, it seems that the space for cryptocurrencies in the United States has finally changed and cryptocurrency companies are likely to witness a great growth in the country.