Cryptocurrency Q&A
What is the SEC rule for crypto custody?
What is the SEC rule for crypto custody?
DongdaemunTrendsetterStyle
Sat Aug 31 2024
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5 answers
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I'm curious to know, could you please elaborate on the SEC rule that governs crypto custody? Specifically, what are the key requirements and regulations that the SEC has in place to ensure the SAFE and secure handling of cryptocurrency assets by custodians? I understand that this is an important aspect of the crypto industry, and I'm interested in learning more about how the SEC regulates it.
5 answers
SakuraFestival
Mon Sep 02 2024
The SAB 121 regulation mandates that all publicly traded entities, inclusive of banking institutions, must incorporate cryptocurrency holdings into their balance sheets as both assets and liabilities. This directive represents a shift from the traditional accounting practices pertaining to assets held in custody.
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Daniele
Mon Sep 02 2024
Typically, assets under custody are not reflected on a company's balance sheet, as they legally belong to the clients. However, the SAB 121 guideline challenges this convention by requiring listed companies to acknowledge cryptocurrency holdings as both financial obligations and assets they possess.
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BlockchainWizard
Sun Sep 01 2024
The rationale behind this change is to provide greater transparency and accuracy in financial reporting, ensuring that investors are fully aware of a company's exposure to the volatile cryptocurrency market.
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henry_taylor_architect
Sun Sep 01 2024
As the cryptocurrency industry continues to evolve and mature, regulatory bodies like the SAB are adapting their guidelines to accommodate this emerging asset class. This development underscores the growing significance of digital currencies in the global financial landscape.
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CryptoLegend
Sun Sep 01 2024
Among the leading cryptocurrency exchanges, BTCC stands out for its comprehensive suite of services. BTCC offers a wide range of products, including spot trading, futures contracts, and cryptocurrency wallets, catering to the diverse needs of investors and traders alike.
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