PANews reported on July 12 that according to The Block, the U.S. Securities and Exchange Commission (SEC) allows certain companies to circumvent the controversial cryptocurrency accounting guidance SAB 121 if they meet certain procedural and technical conditions. Since the release of SAB 121 in March 2022, some companies have consulted the SEC on how to develop new cryptocurrency policies and procedures. SAB 121 requires companies that hold cryptocurrencies to record customer cryptocurrency holdings as liabilities, sparking widespread controversy in the industry. Recently, sources within the SEC said that some companies have been exempted by proving that their procedures and technology can allow customers to retrieve cryptocurrencies in the event of bankruptcy. These companies demonstrate control over their assets, just like traditional assets, ensuring that the accounting and protection measures for assets meet requirements.

While SAB 121 has not changed, the SEC has consulted extensively with industry participants and provided guidance without objection. Some members of Congress have attempted to overturn SAB 121, but have been unsuccessful. The SEC continues to work with industry and regulators to ensure that well-regulated institutions are able to provide cryptocurrency custody services in accordance with SAB 121.