SIFMA supported a Congressional joint resolution sponsored by Senator Cynthia Lummis (R-WY) and Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC) to disapprove SEC Staff Accounting Bulletin No. 121, which prevents banks from providing custodial services to digital assets investors by requiring them to keep those assets on-balance sheet.
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In a letter to the Federal Reserve, the FDIC, the OCC and the NCUA, Senator Cynthia M. Lummis (R-WY) and Representative Patrick McHenry (R-NC) criticized SEC guidance on the accounting treatment of cryptocurrency assets by custodians.
The New York State Department of Financial Services issued guidance on sound custody and disclosure practices for crypto assets in order to protect customers in the event of a bank insolvency.
SIFMA and the American Bankers Association urged the SEC to delay the effective date of a Staff Accounting Bulletin which would require firms providing custody for crypto-assets to bring those assets onto their balances sheets.
The Congressional Research Service reviewed digital wallets and policy issues arising out of their use.