According to Odaily, US Senator Elizabeth Warren recently expressed her support for the SEC Staff Accounting Bulletin (SAB) 121 during a Senate hearing. Warren stated that this standard applies to companies dealing with cryptocurrency businesses and aims to provide accounting guidance. She believes that SAB 121 'simply clarifies' how companies should consider risks related to cryptocurrency and disclose these risks. These risks include hacking attacks, theft, and the loss of cryptocurrency when a company goes bankrupt.
Warren added that this standard does not require cryptocurrency platforms to add their customers' cryptocurrency to their balance sheets. This statement contradicts the previous statement made by Patrick McHenry, the chairman of the House Financial Services Committee, who said that the bill 'requires financial institutions and companies protecting customer digital assets to keep these assets on their balance sheets.' Moreover, this standard does not make the platform the owner of its customers' cryptocurrency.
In other news, the US Senate passed a resolution to overturn SEC SAB 121 with a vote of 60 to 38. However, this resolution may be vetoed once it reaches President Biden's desk. It is reported that the SEC previously issued SAB 121, which requires companies to record the cryptocurrency assets they hold on their balance sheets. Critics believe that this provision is too strict and essentially hinders major custodians and companies from holding cryptocurrency assets for customers.
