TechFlow news, September 10 — According to Cointelegraph, Paul Munter, Chief Accountant of the U.S. Securities and Exchange Commission (SEC), said on September 9 at a banking conference that the SEC's position on the controversial rule SAB 121—which restricts banks from providing cryptocurrency custody services—remains "unchanged." Munter emphasized that unless there are specific mitigating factors, companies should record a liability on their balance sheets to reflect their obligation when holding others' crypto assets.
Nate Geraci, president of ETF Store, believes the SEC appears "firm" on SAB 121, reluctant to allow regulated financial institutions the ability to custody cryptocurrencies. Although the U.S. House of Representatives voted in May 2024 to overturn the guidance, President Biden subsequently vetoed the decision. SEC Commissioner Hester Peirce continues to voice concerns about both the substance and the process of SAB 121, highlighting the ongoing controversy surrounding the rule within both political and industry circles.
