Disclosure: The ideas and opinions expressed here are only for the author and do not represent the ideas and ideas of the editorial of Crypto.
On 23 January 2025, President Donald Trump began to fulfill his promise to change the digital asset industry for policies, rules and regulations to change the promise of changing the digital asset industry, which for the use of America’s status as a leader of the world for the use of related technologies in all areas of digital assets, blockchain technology, and all areas of the economy, “to” token friendly initiative “. These include:
- President Donald Trump Released An executive order, Strengthen American leadership in digital financial technology, Which White House AI and Crypto Caesar David Sachs (who shared their opinion Here,
- US Securities Exchange Commission canceled the Accounts Rules Sab 121 This stopped financial institutions from detaining customers digital assets.
About sab 121
Staff Accounting Bulletin 121 Was released by SEC staff on 31 March 2022, ahead of many bank failures Involved Exposure for digital asset industry. This was released in response to an increase in the number of institutions providing digital assets detained services, which have unique technical, legal and regulatory risks associated with them.
The rule requires a unit to identify a fair market value, or a liability on FMV and the corresponding assets for the protection of digital assets for customers. This balance sheet disclosure requirement, which did not apply to traditional assets – in securities – fell into custody, faced challenges to banks subject to regulator reserved requirements. The rules increased the financial burden on these financial institutions, which want to offer digital asset detained services, possibly preventing them from entering the market.
This rule needs to provide a significant number of institutions, which for both financial statements and out of financial statements, for both, about the nature and volume of digital assets and any risk related to concentrations in the protection of digital assets, is required to provide detailed revelations for both. Such revelations included information about who kept the cryptographic keys, who maintained internal recordskeeping, and who were bound to protect digital assets and protect them from damage or theft.
In addition, it was not easy to use the rule as it did not define security. Institutions often needed to use important decisions to determine whether a transaction had fallen within the scope of the rule.
For these reasons, traditional financial institutions did not favor Sab 121. This essentially created a significant hurdle to offer digital asset custodial services, which hinders the innovation innovation.
William Quigley, who started his career as a bank auditor before becoming a cryptocurrency and blockchain investor and co-founder.
,Sab 121 placed a significant restraint on the capacity of banks, which a bank needed to reflect both an asset and liability to maintain the custody of the customers, for which it should reserve capital on his balance sheet, even if it is not the owner of digital property. Rescue of sab 121 will allow banks to do tokens,
About sab 122
Staff Accounting Bulletin 122 Banks and traditional financial institutions offer more flexibility that provide or provide, which is interested in providing digital asset-keep services by returning to East-SAB 121 accounting principles and standards. [ASC 450-202] Or [IAS 373] The GAAP and IFRS according to accounting standards, for the liability ratio without the need for one-to-one asset, the sab 121 was installed. Initial Guidance Around 2020 was provided by the office of the controller of the currency.
The SEC staff emphasizes that institutions should continue to provide clear and intensive revelations about the risks, obligations and uncertainties related to the safety of digital assets, which agencies in which agencies Joint details Detailed for banks in 2023. ,FDIC is ready to connect with the President’s Working Group on Digital Assets Markets,, Said Acting Chairman Travis Hill, who Issued 175 documents relate to their own care of banks, which demand or attach to digital asset activities.
Accordingly, SAB 122, which applies to the annual period starting after 15 December, 2024, does not completely absorb a reporting company by recognizing the liability related to the digital asset custodial activities of the institutions, with alternative rescue in any earlier interim or annual financial statements period.
conclusion
SEC acting president Mark T. in Working Group on Digital Asset Markets. Uyda, who launched a task force led by the Republican Commissioner Haster Peerus, which was accused of “developing a wide and clear regulatory structure” for “digital assets”. The target of this task force is to regulate “low through enforcement” and the installed regulatory guidelines, the installed regulatory guidelines, are greater through the roads, and the comprehensive market for registrations, and comprehensive markets for registration requirements, and complicated Will continue institutional participation in development.
SEC Task Force has been welcomed by SEC Task Force -the world’s largest Custodian Bank of New York (BNY) Stated Intention to expand its custody services in digital assets, American Bankers Association Also “Etrealize.io, which connects financial institutions to the largest, safe and open blockchain eco-friendly atherium ecosystem worldwide”, said Vivek Raman, CEO of Etrealize.io.
