The SEC allows certain companies to circumvent controversial cryptocurrency accounting announcements

According to sources, a number of companies and Financial Institution Groups have made a number of business requirements that SEC staff agreed would allow them to be exempt from controversial cryptocurrency accounting guidance. Since the release of SAB 121 in March 2022, companies have been seeking advice from the SEC to develop new policies and procedures related to cryptocurrencies following the collapse of a large number of cryptocurrency industries. SAB 121 itself has not changed, the sources added.
"There are many unanswered questions as to how the law on these things will come out in April 2022, and we see many crypto industry players not being careful in providing these services, to the detriment of many customers," the SEC source said. Companies have now demonstrated that they have put in place certain procedures and techniques that allow customers to retrieve their cryptocurrency in the event of bankruptcy like any other asset, such as the U.S. dollar, and are therefore not subject to obligations under SAB 121, the source added.