SEC Uyeda Recommends Withdrawing Staff Bulletin on Crypto Assets
SEC’s Uyeda Calls for Withdrawal of Staff Bulletin on Crypto Assets
SEC Commissioner Mark Uyeda has suggested that the agency withdraw a staff accounting bulletin that altered how banks and other publicly traded entities handle obligations tied to safeguarding digital assets. This bulletin, known as Staff Accounting Bulletin 121, was published in 2022 without consulting other regulators or seeking public input on its changes regarding digital asset custody.
During a recent fireside chat at an American Institute of Certified Public Accountants’ conference, Uyeda expressed concern over the lack of a proper notice and comment process for SAB 121, specifically noting that it was issued without a commission vote. Given the significant impacts of SAB 121, he argued for its withdrawal, emphasizing that a more thoughtful approach, possibly led by the Financial Accounting Standards Board, should be taken to address the custody of digital assets.
Earlier this year, President Biden vetoed a House joint resolution aimed at overturning SAB 121, which was supported by lawmakers from both parties. The American Bankers Association and other financial industry groups had pushed for the resolution’s approval, arguing that the bulletin’s requirement for banks to include the value of digital assets held in custody on their balance sheets posed a threat to the banking sector’s ability to provide secure custody of digital assets to customers.
