🚀【New trends in blockchain regulation: SEC relaxes restrictions on digital asset custody】🚀

Recently, Paul Munter, chief accountant of the U.S. Securities and Exchange Commission (SEC), revealed in a speech that the SEC has backed down in Staff Accounting Bulletin No. 121 (SAB-121). This bulletin originally restricted banks from providing digital asset custody services to customers.

According to the analysis of Alex Thorn, head of Galaxy Research, Munter proposed some exemptions that allow bank holding companies and introducing brokers to circumvent the provisions of SAB-121. Specifically, if banks obtain written permission from state regulators to custody customer assets in a "bankruptcy isolation" manner, and clearly stipulate standards in the contract and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121.

Introducing brokers also have the opportunity to exempt SAB-121 requirements by meeting three conditions: they cannot hold customers' private keys, cannot act as a third party in transactions, and obtain a legal opinion proving that they meet the digital asset exemption conditions.

Although the U.S. House of Representatives failed to overturn President Joe Biden's veto of SAB 121, this new exemption undoubtedly provides banks and brokers with more room to maneuver.

🔍 This change may have a profound impact on the cryptocurrency market, especially on Bitcoin custody services. Let's wait and see!