Sources: The U.S. SEC allows certain companies to bypass controversial cryptocurrency accounting announcements

ChainCatcher news, according to The Block, sources have revealed that some companies and financial institutions have made certain business requests, and SEC staff have agreed that these requests will allow them to operate without being bound by the controversial cryptocurrency accounting guidance.

Since the release of SAB 121 in March 2022, following a wave of bankruptcies in the cryptocurrency industry, companies have been seeking advice from the SEC to develop new policies and procedures related to cryptocurrencies. Sources added that SAB 121 itself has not changed.

SEC insiders stated, "In April 2022, there were many unresolved issues regarding how the law would come into play on these matters, and we have seen many participants in the crypto industry act recklessly while providing these services, harming many customers."

Sources further noted that companies have now demonstrated that certain procedures and technologies they have implemented allow customers to retrieve their cryptocurrencies in bankruptcy just like any other asset (such as dollars), thus not incurring the obligations set forth by SAB 121.