House to vote today on controversial SAB 121 resolution concerning cryptocurrency

The president and CEO of the Securities Industry and Financial Markets Association, Kenneth E. Bentson Jr., stated in February that the requirement for balance sheet recognition by SAB 121 differs from the current accounting treatment for traditional assets held in custody. According to Bentson, traditional assets held in custody are not obligated to be recorded on a firm’s balance sheet. He further explained that SAB 121’s impact on bank capital and liquidity ratios has discouraged banks from offering custodial services for digital assets.