SEC Loophole in SAB 121 Amid Veto Override Failure
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The US SEC has provided a loophole in Staff Accounting Bulletin 121 (SAB 121) as legislators failed to overturn President Joe Biden’s veto of a bid against it. The House of Representatives could not meet the two-thirds majority required to rescind Biden’s decision. Originally, SAB 121 requires crypto-holding entities to include these holdings on their balance sheets. However, the SEC has allowed some exceptions, provided companies mitigate the associated risks. Despite the failed veto override, the fight isn't over as advocates continue to oppose SAB 121. Exceptions allow public companies not to report customers’ crypto holdings on balance sheets under specific conditions, which aim to protect customers' assets in bankruptcy and establish safeguards. This loophole comes as spot Bitcoin ETFs approvals in January increased interest in crypto.
Source: beincrypto.com ↗
