Banks, Left Off Key Bitcoin ETF Role, Seek SEC Guidance Change

Powerful interest groups are pushing the Securities and Exchange Commission to tweak accounting guidance that makes it more expensive for US banks to hold digital assets for their customers.

The regulator is already facing pressure from both Democrats and Republicans in Congress to repeal the guidance.

The trade group coalition, which includes the Bank Policy Institute, the American Bankers Association, the Securities Industry and Financial Markets Association, and Financial Services Forum, issued a letter to the SEC on Wednesday seeking certain changes.

The existing guidance directs public companies, including banks, to count crypto they custody as ...