According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) seems to have backed down in the SAB 121 proposal for crypto accounting policy.
According to Galaxy Research Director, Paul Munter, the SEC's chief accountant, proposed some exemptions that would allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121.
Banks can avoid SAB-121’s reporting requirements if they obtain written permission from state regulators to hold customer assets in a “bankruptcy-remote” manner, clearly spell out standards in contracts and conduct regular risk assessments.
Introducing brokers can also be exempted from the requirements of SAB-121 by meeting three conditions. The broker cannot hold the client's private keys and cannot act as a third party or agent for the introducing broker in transactions. The introducing broker must obtain a legal opinion certifying that it is an introducing broker that meets the digital asset exemption conditions.