The US House Financial Services Committee has voted 31 to 20 to advance a resolution challenging the Securities and Exchange Commission (SEC) guidance related to cryptocurrency custody. This move comes as part of ongoing efforts to shape the rules for digital assets.
The Securities and Exchange Commission (SEC), along with other regulatory bodies, are working together to create a guideline for the Financial Data Transparency Act.
This act is expected to set standards and guidelines for how financial data, possibly including information related to cryptocurrencies, is reported and managed.
On the flip side, amid the larger regulatory initiative, the SEC has issued a particular accounting guideline that has sparked apprehension. This guideline is believed to potentially pose challenges for banks aiming to take on the role of custodians for cryptocurrencies.
In response to this disclosure, the House aims to invalidate or dismiss the specific directives and regulations laid out by the SEC. Those supporting the resolution through their votes are signaling their dissent with the SEC’s guidance and its perceived consequences for the participation of the banking sector in the custody of cryptocurrencies.
The outcome of this resolution, which now moves to the next legislative steps, could have significant implications for the future regulatory framework surrounding cryptocurrency custody.
The United States is still navigating the complexities of regulating cryptocurrencies, with a full regulatory regime unlikely to be in place before 2025.
So far, its approach to crypto regulations involves various agencies like the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service (IRS).
The SEC views cryptocurrencies as securities, while the IRS treats them as property subject to capital gains taxes. Additionally, the nation has been active in enforcing legal actions against crypto companies, with the SEC suing major players like Coinbase and Binance.
