**Binance News Update**
In a recent development, the **Securities and Exchange Commission (SEC)**, led by Gary Gensler, has faced criticism for its regulatory tactics concerning cryptocurrencies. Critics argue that the SEC has exceeded its authority, complicating the regulation of digital assets.
A prime example is the controversial **Staff Accounting Bulletin 121 (SAB 121)**, which requires that digital assets be listed on the balance sheets of publicly traded banks. This directive goes against the traditional banking principle of keeping custodial assets off-balance sheet, leading to banks' hesitation to engage with digital assets.
**Impact of SAB 121 on the Banking Sector**
The implementation of SAB 121 is seen as a setback for the digital asset sector, barring banks with extensive experience in custodial services from entering the space. This, in turn, is perceived as a risk to the security of American investors.
Concerns were amplified with the approval of bitcoin **Exchange-Traded Products (ETPs)**, where the custody of bitcoin is not managed by banks, often resulting in a single custodian for most ETPs. This raises significant issues that Gensler needs to address to safeguard retail investors.
**Controversy Over SAB 121's Issuance**
The SEC's method of enacting SAB 121 has also come under fire. The bulletin was issued without the input of banking regulators and sidestepped the usual regulatory procedures, leading to its classification as a rule by the **Government Accountability Office** under the **Congressional Review Act** due to its controversial nature.
**Bipartisan Push for Regulatory Change**
Recently, the **US House of Representatives** passed a bipartisan resolution, **H.J. Res. 109**, with substantial support, aiming to annul SAB 121. The resolution, now before the Senate, is backed by those who believe it could catalyze a shift in the SEC's approach to digital assets and promote the secure custody of cryptocurrencies, ultimately protecting American investors.
🪙💼 **Cryptocurrency Custody: A Legislative Crossroads** 💼🪙#PEPEATH #GME #Memecoins #ETHETFS #altcoins $BTC $ETH $BNB
