Under the Biden administration, the SEC and other institutions advanced the negative approach to crypto currencies and found support from the central government. This situation has caused us to see many bad news from the US front for crypto currencies over the years. However, at the point we have come today, things are reversed.
Sab 121 and Effects
Led by Gensler Selection At every opportunity, he took special steps to undermine crypto coins. Sab 121 was one of the most annoying moves. The controversial accounting guide, known as SEC’s Personnel Accounting Bulletin (SB) 121, was removed by Hester’s first week of Trump’s first week.
When this rule was first introduced, traditional accountants were surprised by Sab 121, and a leading player said that the rules created a completely new accounting standard for digital assets, and that this was a movement outside the SEC’s authority. Jim Kroeker, former Vice President of the Financial Accounting Standards Board, the chief accountant of SEC, said;
“SEC personnel tried to say that in the past, SAB 121 was consistent with existing GAAP standards, and that’s not true. This has created a new and unique accounting model for crypto storage arrangements without going through the process to create GAAP. ”
Generally accepted accounting principles (GAAP) are the uniform accounting rules and instructions published by FASB and that all US public companies should comply with. They are important because they provide consistency and transparency in financial reporting of banks and other financial institutions.
Elective Crypto Coins By establishing a separate standard for the industry, the financial institutions in the country had cut off from crypto currencies.
What has changed?
SEC spokesperson Sab 121 after the abolition of companies will no longer be punished for providing crypto storage services, he said. Large banks will now be able to provide services for crypto currencies. For example JPM crypto- While it even insists on opening a bank account to its companies, it will be able to keep it institutionally its customers or its own crypto currencies today.
Of course, institutions such as FED, FDIC and OCC should also encourage banks on this issue on March 6, three institutions will meet to review the arrangements together. Here we will probably see something about the steps to be taken about crypto currencies.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
