TechFlow news, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) appears to be backing down on its SAB 121 proposal regarding crypto accounting policies.
According to analysis by Galaxy's head of research, Paul Munter, the SEC's Chief Accountant, has proposed certain exemptions that would allow bank holding companies and introducing brokers to bypass SAB-121’s custody requirements.
If a bank obtains written permission from a state regulator to hold client assets in "bankruptcy remote" structures, clearly defines standards in contracts, and conducts regular risk assessments, it may avoid the reporting obligations under SAB-121.
Introducing brokers may also qualify for exemption from SAB-121 requirements by meeting three conditions: they must not hold customers’ private keys, must not act as third parties or agents of the introducing broker in transactions, and must obtain a legal opinion confirming their status as introducing brokers eligible for digital asset exemptions.
