ChainCatcher reported that according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) seems to have backed down in the crypto accounting policy SAB 121 proposal.
According to Galaxy Research Director, Paul Munter, the US SEC's chief accountant, proposed some exemptions that would allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121.
Banks can avoid SAB-121 reporting requirements if they obtain written permission from state regulators to hold customer assets in bankruptcy remote form, clearly define standards in contracts, and conduct regular risk assessments. Introducing brokers can also be exempt from SAB-121 requirements by meeting three conditions. The broker cannot hold the customer's private keys and cannot act as a third party or agent for the introducing broker in transactions. The introducing broker must obtain a legal opinion certifying that it is an introducing broker that meets the digital asset exemption conditions.
