As part of the changes that have been generated under the Trump administration, the American stock and values commission (SEC) eliminated the Sab 121 accounting bulletin, a controversial regulation that prevented banks from offering services with Bitcoin (BTC).
It is one of the most controversial regulations within the Bitcoin (BTC) ecosystem and cryptocurrencies, which was issued by the SEC in March 2022, under the administration of Joe Biden.
The rule asked the banking entities, who wanted to guard cryptocurrencies, Recognize these assets as liabilities in their balances. This, in order to reflect them as part of the risks. By not accurately indicating the underlying legal and economic obligations of custodian, put consumers at a higher risk of loss.
Since its implementation, the cryptocurrency sector has been opposing the norm. Until now they considered it “onerous, excessively complicated and without consonance with the unique nature of cryptoactive.”
But the situation changes with the repeal of the norm, opening the door to the banks to offer services with cryptocurrencies. A fact that has been well seen among the defenders of the sector, including members of regulatory agencies such as the SEC, such as the SEC commissioner, Hester Peirce.
The official, who now leads the working group on cryptocurrencies, turned to social networks To express your relief: «Goodbye, know 121! It hasn’t been fun, ”he said. A feeling that reflects the frustrations of many and the enthusiasm that arises, both in the financial services industry and in that of cryptocurrencies.
The idea was reinforced by Senator Cynthia Lummis, promoter of the creation of a Bitcoin reserve, who He went to x to publicize your opinion about repeal.
Sab 121 was disastrous for the banking industry and only stopped American innovation and the progress of digital assets. I am excited to see that it is repealed and that the SEC is back to the fulfillment of its expected mission.
Senator Cynthia Lummis.
The path of regulation is indicated
Joy comes In the middle of the regulatory turn which is giving the United States, in favor of the development of the ecosystem. Analysts stand out among the recent decisions of Trump’s government, because simplifies Bitcoin custody by banksit encourages bank adoption and increases trust in traditional finances.
In that sense, three aspects are indicated in where the regulation is directed in the US. The simplification of custody, confidence in the work of banks and a new opening climate.
With the first point you can see an immediate advantage: companies will probably find easier to manage cryptocurrencies within their existing systems, not having to classify them as liabilities.
Additionally, the general public is offered to the general public in traditional financial companies that already provide services with cryptocurrencies. Well, when abandoning cumbersome and unnecessary regulations, the gap between conventional finances and cryptocurrency space closes.
Consequently, repeal will encourage the entry of banks into the cryptocurrency market, knowing that they will not face excessively complex accounting requirements. It is expected, therefore, that this fact leads to greater institutional participation in the cryptocurrency market.
What will banks do?
But in the midst of the change that raises the elimination of the SAB 21, there is an open question: is the termination of SAB 121 by the SEC sufficient for the banks of the United States?
In this regard, the pronouncements of great banks such as Morgan Stanley and Bank of America are known. The managers of these financial companies expressed their intention to get involved in the Bitcoin business. Although they were cautious when they say they have to work with regulators.
As explained by the executive director of Banco Morgan Stanley, Ted Pick, a key aspect is to evaluate are the possibilities that banks have to make transactions directly with cryptocurrencies, being a financial institution highly regulated.
As Cryptonotics reported, for the Executive “the broader question is whether the necessary maturity has been achieved.” In any case, what is now established is that companies must evaluate whether the protection of cryptoactives creates a responsibility, so They must measure it using accounting standards established.
They must deliver detailed information about protection obligations, ensuring that investors understand the associated risks and obligations.
Some fears persist
The perspectives point to a very good disposition, as expressed by the executive director of Bank of America, Brian Moynihan, who predicted that the banking system will enter the cryptocurrency ecosystem, ensuring that the process will not be difficult.
However, even after some regulatory obstacles have been overcome, Banks still have a lot to solve. Cryptocurrency custody, regulatory compliance and risk fear will not disappear overnight. Collapses scars such as FTX and some great banks are still fresh and none of these entities wants to become the next scapegoat.
The issue of competition is also taken into account. Native cryptocurrency companies such as Coinbase and Fidelity Digital Assets have been in trenches for years. They have created systems, have gained confidence and adapted to market oscillations. Banks could be coming late to the game and have to demonstrate They can keep up.
But staying out is no longer an option. More and more customers ask for cryptocurrencies and Demand is increasingly difficult to ignore. These are custody services or loans supported by cryptocurrencies, banks have pressure to act, or run the risk of becoming irrelevant.
