SEC's New Criteria for Crypto Custody Accounting Guidance Deemed 'Positive' by Galaxy Research Head

SEC's New Criteria for Crypto Custody Accounting Guidance Deemed 'Positive' by Galaxy Research Head

The Securities and Exchange Commission’s (SEC) recent mention of criteria that could allow financial firms to bypass the Staff Accounting Bulletin 121 (SAB 121) accounting guidance for crypto asset custody has been met with positive reactions from the crypto industry. Alex Thorn, Head of Research at crypto trading and asset management firm Galaxy, said in a statement that such a move could have positive developments for crypto adoption and the related industry. Thorn noted that SAB 121, which was issued in 2018, has been a major hurdle for financial institutions looking to offer crypto custody services. The SEC’s new criteria, as outlined by Chief Accountant Paul Munter in a recent speech, could provide a way for financial institutions to avoid the onerous requirements of SAB 121. This could make it easier for banks and other financial institutions to offer crypto custody services, which would be a major boon for the crypto industry. The SEC’s move is seen as a sign that the agency is taking a more pragmatic approach to regulating crypto assets. This is a positive development for the crypto industry, as it could help to accelerate the adoption of crypto assets by mainstream financial institutions.