SEC Commissioner Hester Peirce has expressed ongoing concerns about the SEC's Staff Accounting Bulletin No. 121 (SAB 121), despite SEC Chief Accountant Paul Munter affirming that the Commission's stance on SAB 121 remains unchanged. Munter stated that the SEC staff believes entities should record a liability on their balance sheets to reflect their responsibility to safeguard digital assets held for others. However, exceptions may apply, such as bank-holding companies with bankruptcy protection and broker-dealers without control over cryptographic keys. SAB 121 has received criticism within the industry, but efforts to overturn it were vetoed by President Joe Biden. Peirce has urged others to share their thoughts on the policy with her. Some experts believe that the SEC is resistant to allowing regulated financial institutions to custody digital assets.



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