Mar 03, 2023
Lawmakers Criticize SEC’s Crypto Accounting Guidelines, Citing Risk of Loss
Two United States lawmakers have expressed their disapproval of the guidelines set out by the United States Securities and Exchange Commission (SEC) regarding crypto accounting. The guidelines, which became effective in April 2021, place digital assets held by customers at greater risk of loss, according to Senator Cynthia Lummis and Representative Patrick McHenry.
In a letter addressed to the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration, the legislators argued that the Staff Accounting Bulletin (SAB) 121 issued in March 2022 was not in line with the SEC’s mission to protect customers. The bulletin requires financial companies to recognize all digital assets they do not control as a liability and be backed by a safeguarding asset.
The lawmakers also highlighted their disagreement with the “breadth of the ‘digital asset’ definition in SAB 121” and called for “a more nuanced hierarchy for this asset class which considers the opportunities and risks of digital assets with different functions.”
The effect of SAB 121, they said, will be to “deny millions of Americans access to safe and secure custodial arrangements for digital assets.”
The legislators’ letter comes after similar concerns were raised by five Republican senators, including Lummis, in June 2021. SEC Commissioner Hester Peirce also shared her disapproval of the bulletin in March 2021, criticizing the “scattershot and inefficient approach to crypto” taken by the SEC.
Crypto companies, such as Coinbase, have already started to comply with the new rule, with the company’s Q2 filing showing an $88B “customer crypto liabilities” item.
The SEC’s new guidelines have raised questions about the future of crypto and digital asset trading in the US, and the impact it will have on the web3 space. With the increased demand for NFTs, crypto companies are now turning to NFT marketing to promote their services and attract customers.
NFT marketing has emerged as a powerful tool for crypto companies to increase their visibility and reach a larger audience. From running Twitter NFT marketing campaigns to engaging with NFT promotion agencies, crypto companies are looking to capitalize on the NFT craze.
NFT promotion agencies are helping crypto companies to create engaging campaigns that focus on selling NFTs. They are also providing strategic advice to crypto companies on how to best leverage the NFT market and increase their profits.
The SEC’s new guidelines have raised questions about the future of crypto and digital asset trading in the US, and the impact it will have on the web3 space. With the increased demand for NFTs, crypto companies are now turning to NFT marketing to promote their services and attract customers. NFT marketing has emerged as a powerful tool for crypto companies to increase their visibility and reach a larger audience. From running Twitter NFT marketing campaigns to engaging with NFT promotion agencies, crypto companies are looking to capitalize on the NFT craze.
NFT promotion agencies are helping crypto companies to create engaging campaigns that focus on selling NFTs. They are also providing strategic advice to crypto companies on how to best leverage the NFT market and increase their profits.
The SEC’s new guidelines have raised significant concerns among crypto companies and customers alike, as it places digital assets at greater risk of loss. While the lawmakers have expressed their disapproval of the guidelines, it remains to be seen if the SEC will take their concerns into consideration and make the necessary changes.
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