<img src="https://crypto.news/app/uploads/2023/10/crypto-news-nft-sales-surge-after-SEC-fails04.webp” />
Financial advocacy organizations are urging the SEC to amend current accounting rules that increase the financial burden on U.S. banks that manage crypto assets for clients.
The call for change is underscored by the bipartisan efforts of members of Congress, who are also advocating for the repeal of these accounting rules. A consortium of industry groups, including the American Bankers Association and the Securities Industry and Financial Markets Association, formally addressed the SEC in a letter, it was revealed. bitcoin-rallies-banks-push-sec-to-change-an-accounting-guideline-sab-121?utm_source=telegram&utm_content=crypto&utm_medium=social” data-type=”link” data-id=”https://www.bloomberg.com/news/articles/2024-02-15/as-bitcoin-rallies-banks-push-sec-to-change-an-accounting-guideline-sab-121?utm_source=telegram&utm_content=crypto&utm_medium=social” target=”_blank” rel=”noopener”>Bloombergrequesting specific modifications to the regulations.
Under current guidelines, public entities such as banks must declare cryptocurrencies in their custody as liabilities, requiring them to set aside equivalent assets to protect against potential losses and meet capital requirements.
The coalition's proposals to the SEC include removing certain assets from the broad definition of cryptocurrencies, specifically those traditional assets that are documented or transferred via blockchain, such as tokenized deposits, and tokens that are part of sanctioned products. the SEC, like spot tokens. bitcoin ETFs.
The proposal also suggested that regulated banking institutions be exempt from the obligation to include cryptocurrency holdings as liabilities on their balance sheets while requiring disclosure of cryptocurrency-related transactions in their financial reports.
