The Securities and Stock Exchange Authority cancels the unpopular banking base that prevented the Wall Street banks from adopting encrypted currencies
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After years of pressure by the encrypted currency industry, the US Securities and Stock Exchange canceled the accounting base that forced banks to deal with encrypted currencies. Bitcoin And other symbols are a commitment in their public budgets.
This guidance was a great deterrent to the Wall Street banks that owned Bitcoin – the latest in a series of measures taken by the new Trump administration to facilitate dealing with decentralized virtual currencies on American companies and financial companies.
The guidance, known as the Personnel Accounting Bulletin 121, or SAB 121, was presented in 2022 and was subjected to digital assets to strict capital requirements. This procedure, which led to a significant increase in financial and organizational risks to provide encrypted currency services, has increased the operational costs of financial institutions and at the end to inhibit the wider participation by Wall Street in encrypted currency markets.
The efforts to cancel SAB 121 were supported by the two parties in Congress last year. But President Joe Biden at the time used the veto against the proposed legislation, leaving the rule as it is and the banks were discharged from the adoption of digital assets. Banks have been largely prevented from expanding their encrypted currency offers beyond trading derivatives and offering investment funds circulating to wealth management customers.
The Securities and Stock Exchange Commissioner, Hester Pears, who was appointed on Tuesday to lead the new “encrypted currency team” within the agency with the aim of “developing a comprehensive and clear organizational framework for the assets of encrypted currencies”, with this announcement.
She wrote in a letter: “Goodbye, goodbye SAB 121! It was not fun.” Share on x Late Thursday night after the decision.
The decision of the Securities and Exchange Commission was announced to cancel the base in General notificationAnd that is a few days after Gary Ginsler, former head of the Securities and Exchanges Authority and the strong supporter of this procedure, stepped down from his position. Ginserner defended the base as necessary to protect investors in the event of the bankruptcy of encrypted currency companies.
This week in Davos, Switzerland, David Solomon, CEO of Goldman Sachs, told CNBC that it is from an organizational perspective, the bank cannot own bitcoin and that it will reconsider the case if the rules change. Mourjan Stanley Executive Chiefs Bank of America The World Economic Forum also discussed how President Donald Trump’s tone, supporting encrypted currencies, can reshape their plans and may expand digital offers.
– Jeff Cox from CNBC contributed to preparing this report.
