The US House of Representatives Financial Services Committee voted against the SEC-designated banks’ cryptocurrency holding policies.
House Financial Services Committee Thursday, February 29 gathered to vote against the U.S. Securities and Exchange Commission’s cryptocurrency and digital asset custody rules for banks.
SEC’s SAB 121 Personnel Accounting Bulletin called No. 121It was the subject of controversy last year due to concerns that it could prevent banks from providing custody services for cryptocurrencies and digital assets. SAB. According to Article 121, companies and banks holding cryptocurrencies would have to show these assets on their balance sheets. To this offer Both banks and cryptocurrency institutions were opposed from the beginning.
House lawmakers who voted to repeal this practice It was decided by a vote of 31 to 20 to remove this rule completely..
Member of Parliament who made a statement on the issue Mike Floodreminded that this practice will add unnecessary liabilities to banks and institutions, causing balance sheets to swell:
The implications of requiring banks to keep these assets on their balance sheets are significant. If a bank stores digital assets according to SAB 121 parameters, it will impact its other regulatory obligations, such as on-balance sheet treatment, capital and liquidity requirements. As a result, banks will either choose to store digital assets, thus inflating their balance sheets and seriously impact all other business lines, or they will be completely out of the market.