SEC Reaffirms Stance on Crypto Custody Rule SAB 121 for Banks

Sep 10, 2024, 06:49 AM

The Securities and Exchange Commission (SEC) has reiterated its stance on cryptocurrency custody rules, specifically SAB 121. This rule restricts regulated financial institutions, including banks, from providing crypto custody services unless they meet specific exceptions, such as recording a liability for holding crypto assets. SEC Chief Accountant Paul Munter emphasized that the agency is not changing its position on this matter. The SEC also warned crypto investors to use only approved digital exchanges and platforms for trading.