President Donald Trump announced his support for the responsible growth and use of digital assets and blockchain technology in order to make America a leader in the industry. As part of this initiative, the SEC issued Staff Accounting Bulletin 121, which required entities offering digital asset custody services to recognize a liability and asset at fair market value. This posed challenges for banks subject to regulatory reserve requirements and hindered tokenization innovation. However, this rule has now been rescinded with the introduction of Staff Accounting Bulletin 122, which provides greater flexibility to banks and financial institutions. The SEC stresses the importance of disclosures about risks and obligations related to safeguarding digital assets. The President's Working Group on Digital Asset Markets, led by SEC Acting Chairman Mark T. Uyeda, is working on developing a comprehensive regulatory framework for digital assets. These initiatives are welcomed by industry players such as the Bank of New York and the American Bankers Association.



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