The US Securities and Stock Exchange Committee (SEC) reviewed the controversial employee accounting bulletin No. 121 (SAB 121), days after the agency’s formation of the new encryption squad, a step expected to facilitate the accreditation of the encoded currency by traditional banking institutions.
Previous guidelines require companies to get to know the customer’s sheep possesses as opponents on their public budgets, which attracted strong criticism from the digital asset industry. However, the last review removes this requirement. Simply put, it will make the review it is easy for banks to provide an encrypted currency exposure to their customers.
Goodbye, bye SAB 121! It was not fun: https://t.co/ciwuc0isue | Employee Accounting Bulletin No. 122
Hesterpection January 23, 2025
Under the new framework, financial institutions are no longer forced to include customer enclosure holdings as part of their assets and opponents. However, SEC requires that companies still report any risks related to these holdings if negative events occur.
The new SEC approach to deal with encryption services
According to the official statement of SEC: “Entrepreneurs state that they should continue to consider the current requirements to provide disclosures that allow investors to understand an entity’s commitment to protect encrypted couples that have been kept for others.”
SEC policy review is likely to feed optimism in the encryption markets. By facilitating banks to provide services related to the cryptocurrency. The decision can lead to an increase in institutional adoption and leads to a large gathering in the encryption market. Over the past few years, the major financial institutions have expanded their encryption offers in response to the increasing customer demand.
In addition to the upcoming feelings, US President Donald Trump recently signed an executive matter directing federal agencies to create a national stock of digital assets.
Also read: Donald Trump signs an executive order to make encryption and create a stock of digital assets
