The SEC softened its stance on SAB-121, proposing regulations that allow banks to hold customer assets through a "bankruptcy isolation" method

ChainCatcher news, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) seems to have made concessions in its proposed crypto accounting policy SAB 121.

According to an analysis by Galaxy's research director, the SEC's chief accountant Paul Munter has proposed some exemptions that allow bank holding companies and introducing brokers to circumvent the custody provisions in SAB-121.

If banks obtain written permission from state regulators to custody customer assets in a bankruptcy-remote manner, clearly specify standards in contracts, and conduct regular risk assessments, they can avoid the reporting requirements of SAB-121. Introducing brokers can also be exempt from SAB-121 requirements by meeting three conditions. Brokers cannot hold customers' private keys, cannot act as a third party or agent for introducing brokers in transactions. Introducing brokers must obtain a legal opinion stating that they qualify as introducing brokers under the digital asset exemption conditions.