Acting SEC Chair Uyeda advocates for the implementation of SAB 121

The Securities and Exchange Commission (SEC), a significant regulatory body in the digital assets space, is currently granting exceptions to Staff Accounting Bulletin (SAB) 121, a move that has been met with interest in the industry.

During the Gary Gensler era, SAB 121 was one of the most contentious issues, effectively blocking banks from providing digital asset custody, including for tokenized securities. The bulletin, which made it difficult for banks to engage in digital asset custody, has now seen some exceptions being granted by the SEC. However, banks are still required to clear every engagement with the regulatory body.

Commissioner Mark Uyeda, who has voiced similar forceful views during the Gary Gensler era, is currently serving as the acting Chair of the SEC. His appointment, along with the ongoing process of confirming Paul Atkins as the full-time Chair, is shaping up to bring changes to the SEC's regulatory approach.

Atkins, who was previously announced as the President's pick for the full-time Chair of the SEC, subject to confirmation, is known for advocating a more liberal regulatory approach to the crypto sector. He has initiated efforts such as a task force against cross-border fraud, aiming to create a more conducive environment for digital asset businesses.

Meanwhile, Commissioner Hester Peirce, often referred to as 'Crypto mom', has a higher profile in the digital assets space. Her advocacy for digital assets and blockchain technology has been instrumental in shaping the SEC's policies and regulations in this space.

The SEC's regulations and policies continue to impact the digital assets industry, and the recent developments, including the exceptions to SAB 121, are a testament to the SEC's ongoing role in this space. The need for clarity and certainty in the regulatory environment is crucial for the growth and development of the digital assets industry.

However, the process of engaging with the SEC can still be challenging. Doing a sales pitch with the caveat of needing to check with the regulator can make it trickier to get the client to sign on the dotted line. This underscores the importance of clear and consistent communication between regulators and the industry to foster a more favourable environment for digital asset businesses.

In conclusion, the SEC's evolving approach to digital assets, under the leadership of Commissioner Uyeda and the anticipated leadership of Paul Atkins, is a significant development in the digital assets space. The granting of exceptions to SAB 121, along with the ongoing efforts to combat cross-border fraud, are steps towards creating a more supportive regulatory environment for digital asset businesses.