The Securities and Exchange Commission has eliminated accounting rules that have been controversial for companies to record encrypted assets held for customers as debt on the balance sheet, and more traditional banks have entered the encryption asset storage business. There is a possibility.
According to the industry experts, the cancellation of staff accounting newsletter No. 121 has become a turning point that may reconstruct the way financial institutions to keep encrypted assets, and only in the integration of the industry and Bitcoin and Ethereum. It may lead to the expansion of institutional encryption services.
“Several custodians, such as USBank and BNY, have already provided financing and cash storage for cryptocurrency ETFs. BNY also has the technical ability to store bitcoin and Ethereum,” Canary Capital. Steven McLag, the founder and CEO, told etf.com.
Mr. McLag explains that the deletion of SAB 121 will be able to expand the cryptocurrency ETF service worldwide, and McLag explains and may be acquired by a bank. He added that native companies would be expected to integrate the industry.
However, McLogg pointed out that the migration did not occur overnight. Most banks are initially planned to limit their storage services to bitcoin and Ethereum, which is likely to have a bank storage support when the next wave of virtual currency ETFs such as XRP, Litecoin, and HBAR is launched. Is.
Some ETF issuing companies may transfer their existing products to bank storage services, but McLogg says, “Most banks still take years to get used to their own technical systems. However, it will accelerate with M & A.
This regulation, which explains the outline in Staff Accounting Bulletin 122, is based on a widespread accounting standard, such as the general accounting principles in the United States and the guidelines for the international financial reporting standards, based on widespread accounting standards. Companies are required.
The new guidance will come into effect on the fiscal year starting after December 15, 2024, but companies can also apply changes sooner. The SEC emphasized that companies need to continue to provide clear disclosure of encrypted asset storage obligations based on existing requirements.
This change is followed by a series of council attempts to address accounting requirements. The bipartisan bill that abolished SAB 121 was initially supported last year, but President Joe Biden at the time activated veto.
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