“SAB 121 effectively precludes regulated banking organizations from offering digital asset custody at scale since it treats the assets as if they are owned rather than simply custodied by a banking organization,” in keeping with a letter to Biden on Friday, signed through a number of teams together with the American Bankers Affiliation and Monetary Services and products Discussion board. “Institutions that are forced to record custodied digital assets on balance sheet are subjected to higher capital, liquidity, and other prudential requirements, unlike their non-bank competitors.”
