Summary of Key Points:
- SEC guidance allows banks to avoid reporting customers’ crypto funds if risk mitigation measures are in place.
- SEC eased requirements for reporting crypto holdings on balance sheets for banks and brokerages.
- House resolution attempted to nullify SEC guidelines on crypto custody services but faced a presidential veto.
SEC Guidance on Reporting Crypto Holdings:
The SEC has issued new guidance allowing banks to skip reporting customers’ crypto holdings on balance sheets if risk mitigation measures are implemented. This move aims to protect investors from crypto market risks while ensuring customer assets are safeguarded in case of bankruptcy or failure.
House Resolution Impact on Crypto Custody Services:
Recently, a House resolution sought to revoke SEC guidelines requiring banks to report customers’ crypto holdings on balance sheets, which deterred banks from offering crypto services. Despite the resolution passing the House, it faced a presidential veto and failed to override it, leaving the SEC’s guidelines intact.
