The Securities and Stock Exchange Commission announced the employee accounting bulletin (SAB) No. 122, canceling the previous directives under SAB 121, which the banks discouraged the retaining of the bitcoin in the reservation.
This means that traditional banks and financial institutions can now provide encrypted currency services without great organizational obstacles.
American banks can keep bitcoin
SAB 121 requires companies that have encrypted assets for their customers (such as stock exchanges) to recognize both assets and obligations for these properties in their public budgets.
Now, companies can assess their commitment to protect these assets differently, specifically through emergency obligations, such as possible losses due to theft or fraud.
Goodbye, Goodbye SAB 121! It was not fun | “Employee Accounting Bulletin No. 122”, Securities and Stock Exchange Commissioner Hyster Peres books On X (previously Twitter).
In simple phrases, SABB 122 It removes the strict requirements of banks to record encrypted assets that customers possess, such as bitcoin, such as obligations in their public budgets.
This change simplifies compliance, which reduces the financial burden and the previously associated capital requirements to save encrypted currencies under SAB 121.
“I didn’t even need an executive order! Thank you, Hester Pears and President Uida! This was the right decision for the International Maritime Organization. books European Training Foundation analyst James Sevart.
In general, the new guidance allows more banks to provide bitcoin saving services safely and feasible by allowing them to calculate possible losses only as emergency obligations.
Essentially, banks can now keep encrypted currencies and protect them to their customers as it deems appropriate. Companies have freedom to decide whether they need to recognize responsibility for risk protection and how to measure them.
American encryption regulations change
The cryptocurrency community has become cheerful of this news. For many years, American banks wanted to keep bitcoin, but they were unable to do so. Michael Silor from Microstrategy as well subscriber His enthusiasm on social media.
Returning to May 2024, the House of Representatives and the Senate issued a decision to cancel SAB 121. However, President Joe Biden used the veto against this decision.
This decision comes after the Securities and Exchange Commission established a team of encrypted currencies led by Heyster Peres yesterday. The government issued a wave of advertisements supporting the encrypted currencies today.
Earlier, President Trump signed the first executive related to encrypted currencies, proposing the United States to create a stock of digital assets.
In general, it seems that the organizational field of encrypted currencies in the United States has finally turned, and it is likely that cryptocurrency companies will witness significant growth in the country.
Disintegration
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