9 months ago
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has raised ongoing concerns astir the SEC’s Staff Accounting Bulletin No. 121 (SAB 121).
Peirce’s comments came aft a Sept. 9 speech by SEC Chief Accountant Paul Munter, who affirmed that the Commission’s stance connected SAB 121 remains unchanged.
SEC’s unchanged position
Munter emphasized that the SEC staff’s presumption connected the arguable SAB 121 has not shifted, contempt the increasing attraction astir the regulation. He explained that the unit believes an entity indispensable grounds a liability connected its equilibrium expanse to bespeak its work to safeguard integer assets held for others.
Munter stated this attack provides investors with timely and applicable accusation to measure the risks of safeguarding crypto connected behalf of others.
He noted that immoderate exceptions apply. For example, bank-holding companies that safeguard crypto with bankruptcy extortion whitethorn not request to grounds liabilities. Additionally, broker-dealers facilitating crypto transactions but lacking power implicit cryptographic keys whitethorn beryllium exempt.
Munter’s views align with the SEC’s position, which asserts that SAB 121 aims to heighten transparency and amended hazard absorption successful the fast-evolving crypto industry.
Despite these intentions, SAB 121 has sparked concerns wrong the manufacture arsenic galore presumption the regularisation arsenic an overreach by the SEC. US lawmakers voted to overturn the SEC’s guidance earlier this year, but President Joe Biden vetoed the repeal.
Peirce’s opposition
In effect to Munter’s speech, Peirce took to societal media level X to reiterate her concerns astir some the contented and process of SAB 121. She urged others to stock their thoughts connected the argumentation with her via email.
Nate Geraci, president of the ETF Store, commented that the SEC seems resistant to allowing regulated fiscal institutions to custody integer assets.
He stated:
[The SEC] simply don’t privation to supply regulated fiscal institutions [with the] quality to custody crypto. Apparently, [the Commission] similar [the] institution they allowed to IPO & past sued to custody immense bulk of spot btc ETF assets.”
The station SEC’s Hester Peirce questions Commission’s stubborn stance connected SAB 121 appeared archetypal connected CryptoSlate.
English (US) 