SEC Allows Some Exceptions to Crypto Accounting Compliance (1)

The SEC has opened a path for banks and brokerages to avoid reporting their customers’ crypto holdings on their balance sheets. But companies must offset risks those assets pose in order to bypass controversial crypto accounting guidance that has become a target of Congress.

Staff with the Securities and Exchange Commission have begun to dole out guidance that certain arrangements may not require a liability to be reported on the balance sheet under staff guidance issued two years ago, said an SEC source familiar with the regulator’s approach.

Several large banks that have consulted with SEC staff starting in 2023 ...