Summary
TLDR: SEC Commissioner Hester Peirce criticizes staff guidance on crypto assets, particularly SAB 121, which requires custodians to report liabilities. Congress is also concerned, with some members trying to repeal the guidance. Peirce advises market participants to engage with the SEC and not give up in seeking clarity on regulations.
Key Points
1. US Securities and Exchange Commission Commissioner Hester Peirce criticizes her colleagues’ communication and enforcement in the digital asset space, specifically calling out the controversial Staff Accounting Bill 121.
2. SAB 121 requires crypto custodians to report a liability and “corresponding assets” on their balance sheets, despite not being an official rule under securities law.
3. Peirce advises market participants to engage with the SEC, keep records of meetings, come prepared with supporting materials, and coordinate messages with others in the industry to nudge the SEC in the right direction.