SEC Allows Some Companies to Avoid Controversial Cryptocurrency Accounting Notice

BlockBeats news, July 12, according to sources, some companies and financial institutions have put forward some business requirements, and the U.S. SEC staff agreed that these requirements will allow them not to be subject to controversial cryptocurrency accounting guidance.

Since the release of SAB 121 in March 2022, after a large number of cryptocurrency industry bankruptcies, companies have been seeking advice from the SEC to develop new policies and procedures related to cryptocurrencies. The source added that SAB 121 itself has not changed.

SEC sources said: "In April 2022, there are many unanswered questions about how the law will come out about these things. We have seen many crypto industry participants being careless in providing these services and harming many customers." The source added that the company has now proved that certain procedures and technologies they have set up allow customers to retrieve their cryptocurrencies like any other assets (such as US dollars) in bankruptcy, and therefore do not bear the obligations stipulated in SAB 121.