SEC cancels an universal banking base that prevented Wall Street banks from adopting encryption

After years of pressure by the encryption industry, the US Securities and Stock Exchange Committee canceled an accounting base that forced banks to treat Bitcoin And other symbols as a responsibility for its public budgets.

The guidance was a great deterrent to the Wall Street banks that owned Bitcoin – the latest in a series of measures taken by the new Trump administration to facilitate companies and financial companies to deal with non -central virtual currencies.

The directives, known as the Personnel Accounting Bulletin 121, or SAB 121, were presented in 2022 and the digital assets are presented to strict capital requirements. This procedure, which greatly sparked the financial and organizational risks of providing encryption nursery services, strengthened the operational costs of financial institutions and eventually discouraged wider participation by Wall Street in the encryption markets.

The efforts to cancel SAB 121 gained support from the two parties in Congress last year. but President Joe Biden Cassing against the proposed legislation achieved a sound rule and more inhibitors of the adoption of digital assets. The banks have been largely banned from expanding their encrypted offers beyond the trading of derivatives and offering investment funds circulating to wealth management customers.

SEC Hyster Pierce Commissioner, which Tuesday It was exploited to lead a new “encryption work squad” within the agency, which aims to “develop a comprehensive and clear organizational framework for encryption principles”, praised this announcement.

“Goodbye, goodbye 121! After x Late Thursday night after the decision.

SEC’s decision to cancel the base was announced in A. General notificationA few days after Gary Ginsner, a former SEC chair and an audio supporter of this measure, stepped down. Ginserner defended the base as necessary to protect investors in the event of the encryption company bankruptcy.

this week In Davos, Switzerland, Goldman Sachs CEO David Solomon CNBC told a regulatory perspective, the bank has not been able to own Bitcoin and that it would reconsider the case if the rules change. CEOs Morgan Stanley and Bank of America It was also weighed by the World Economic Forum on how the president Donald TrumpAl -Moayad’s tone can reshape its plans and may lead to extensive digital offers.

– Jeff Cox of CNBC contributed to this report.