Rep. Nickel Urges SEC Withdrawal of Crypto Custody Rule

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As an experienced financial analyst with a background in regulatory compliance and digital assets, I strongly support Congressman Nickel’s call for the SEC to reconsider Staff Accounting Bulletin 121 (SAB121). The inconsistency of allowing Spot Bitcoin ETPs while restricting banks from holding these digital assets on a large scale not only stifles innovation but also exposes systemic risks in the financial world.

Nickel, a Congressman, advocated for the Securities and Exchange Commission (SEC) to reconsider and rescind Staff Accounting Bulletin 121 (SAB121). He argued that this regulation hinders US banks from offering custodial services for digital assets. Consequently, customers might be compelled to seek alternatives in less regulated international markets.

I penned a missive to Chairman Gary Gensler of the Securities and Exchange Commission (SEC) today, urging them to reconsider and rescind Staff Accounting Bulletin 121. Regrettably, the SEC is making cryptocurrency a contentious political issue, compelling the President to take sides on a topic that significantly impacts numerous Americans.

— Rep. Wiley Nickel (@RepWileyNickel) May 15, 2024

As a crypto investor, I’ve been following the ongoing debate about eliminating SAB 121 and the SEC’s stance on it. Although there seems to be a general agreement among parties to move forward without this rule, I’ve expressed my concerns to the SEC, but they have yet to engage in a meaningful dialogue with me. I believe there is a significant inconsistency in allowing Spot Bitcoin Exchange-Traded Products (ETPs) while preventing banks from holding large amounts of these digital assets. This dichotomy may lead to systemic risks in our financial world that could have serious consequences for all investors.

Rep. Nickel Urges SEC Withdrawal of Crypto Custody Rule

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2024-05-16 06:28