SEC Allows Some Companies to Avoid Controversial Cryptocurrency Accounting Notice
On July 12th, according to sources, some companies and financial institutions have made some business requests, and the staff of the US SEC agreed that these requests would allow them to not be bound by 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 cryptocurrency. The sources added that SAB 121 itself has not changed.
An SEC source said: "There are many unresolved issues about how the laws on these matters will be enacted in April 2022, and we have seen many participants in the cryptocurrency industry being careless in providing these services, harming many customers." The sources added that companies have now demonstrated that certain procedures and technologies they have set up allow customers to retrieve their cryptocurrency in the event of bankruptcy, just like any other asset (such as US dollars), and therefore do not have to comply with the obligations stipulated in SAB 121.
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