The US SEC softens its stance on SAB-121, allowing banks to custody customer assets in a "bankruptcy remote" manner

According to Foresight News , Cointelegraph reported that the U.S. Securities and Exchange Commission (SEC) seems to have backed down in the crypto accounting policy SAB 121 proposal. According to the analysis of Galaxy Research Director, Paul Munter, Chief Accountant of the U.S. SEC, proposed some exemptions that allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121. If banks obtain written permission from state regulators to custody customer assets in a "bankruptcy isolation" manner, clearly stipulate standards in contracts, and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121. Introducing brokers can also be exempted from the requirements of SAB-121 by meeting three conditions. Brokers cannot hold customers' private keys and cannot act as third parties or agents of introducing brokers in transactions. Introducing brokers must obtain a legal opinion proving that they are introducing brokers that meet the exemption conditions for digital assets.