Galaxy Research: Analysis of SEC softening stance on SAB-121
In the crypto-asset space, recent policy developments have attracted widespread attention. The U.S. Securities and Exchange Commission (SEC) appears to have softened its stance on Employee Accounting Bulletin-121 (SAB-121), an important shift, according to analysis from Galaxy Research.
SEC Chief Accountant Paul Munter noted in a speech on September 9 that banks can circumvent SAB-121 if they obtain written permission from state regulators, specify the standards in their contracts and conduct regular risk assessments. hosting requirements. This exemption policy will significantly reduce the compliance burden on bank holding companies and introducing brokers, thereby facilitating their provision of digital asset custody services to customers.
However, it is important to note that large national banks regulated by the Office of the Comptroller of the Currency (OCC) may still face challenges in meeting the conditions for exemption. Nonetheless, the relaxation of this policy is seen as a positive development for the crypto industry and digital asset adoption.
As Alex Thorn, director of research at Galaxy, said, the change reflects adjustments made by the SEC in the face of pressure from lawmakers and market participants. We expect this development will bring further opportunities to the industry.
Stay tuned with us for more in-depth analysis and updates on this topic.
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