TechFlow news — On September 25, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has relaxed its requirements regarding the SAB 121 accounting guidance, allowing BNY Mellon (BNY) to potentially offer Bitcoin and Ethereum custody services for its exchange-traded fund (ETF) clients. After review, the SEC’s Office of the Chief Accountant determined that BNY does not need to comply with SAB 121, which previously required firms holding customers’ crypto assets to record them as liabilities on their balance sheets. The SEC stated that as long as customers receive protections in crypto custody arrangements equivalent to those in traditional custody setups, their balance sheet treatment should remain consistent. BNY said it will continue engaging with banking regulators to scale up custody offerings for crypto ETF clients.
SAB 121, introduced in April 2022, has been highly controversial, with numerous policymakers and industry groups repeatedly calling for amendments or exemptions. Despite sustained pressure, the SEC maintained its enforcement stance until recently softening its position.
