The US SEC softens its stance on the encryption bill SAB-121, allowing banks to hold customer assets in a 'bankruptcy isolation' manner

According to BlockBeats, on September 14th, in a recent speech, the Chief Accountant of the US Securities and Exchange Commission (SEC), Mount, appeared to have made some concessions in SEC's Staff Accounting Bulletin 121 (SAB-121), which restricts banks from providing digital asset custody services to customers. According to the analysis of Galaxy Research Director Thorne, Mount has proposed some exemption conditions that allow bank holding companies and introducing brokers to circumvent the custody regulations in SAB-121. If banks obtain written permission from state regulatory agencies to hold customer assets in a 'bankruptcy isolation' manner, clearly define standards in contracts, and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121. Introducing brokers can also exempt SAB-121 requirements by meeting three conditions. Brokers cannot hold clients' private keys, act as third parties in transactions, or act as agents for introducing brokers. Finally, the introducing broker must obtain a legal opinion to prove that they meet the conditions for exemption of digital assets. BlockBeats previously reported that on July 11th, the US House of Representatives voted on Wednesday to overturn President Joe Biden's veto power over SAB 121 related resolutions, but did not pass, and the US Securities and Exchange Commission's cryptocurrency accounting policy remains unchanged.