“The Commission has refused to provide regulatory guidance on how our rules apply to crypto assets, despite many long-standing plea. Therefore, legal and regulatory. Part of our responsibility for the lack of clarity lies at our doorstep. “
The Securities and Exchange Commission has released a staff accounting bulletin on the accounting of the obligations of companies to protect crypto assets held for platform users.
This security bulletin reflects the staff’s evolving view of accounting for the obligation to protect crypto assets held by the entity for platform users. Staff have determined that due to the risks inherent in crypto assets, affected companies need to record their liabilities and corresponding assets on their balance sheets at fair value.
To support this position, staff emphasizes the technical, legal, and regulatory risks associated with the protection of crypto assets, as well as the “increased risk of economic loss.”
In response to the staff’s breaking news, SEC Commissioner Hester Perth expressed concern about how the changes were being made, rather than the accounting decisions themselves that might be appropriate.
Commissioner Perth first recalled that these risks were not new and that the SEC was already aware of them. She then moved to criticize the fact that the SAB does not recognize the Commission’s own role in creating legal and regulatory risks that justify this accounting.
“The Commission has refused to provide regulatory guidance on how our rules apply to crypto assets, despite many long-standing plea. Therefore, legal and regulatory. Part of the responsibility for the lack of clarity lies at our doorstep. Some awareness of the Commission’s own role in developing the conditions that the staff points out as the legitimacy of the SAB would be appropriate. “
Ripple’s General Counsel Stuart Alderoty share Hester Peirce’s remarks on Twitter are followed by the “fire” emoji. This probably means “burns” in this context.
Ripple is approaching summary judgment on impartial notice as Judge Analisa Torres ordered the parties to agree on a briefing schedule. Defendant wants to open a brief on May 22, but plaintiff considers it “premature” and seeks to extend the XRP proceeding as much as possible, as long as it is the best weapon against Ripple in this case. is.
However, the following court ruling on the SEC’s motion for retrial could change everything. Ripple’s victory means that the SEC will be forced to produce a highly confidential document on Hinman’s 2018 speech. XRP holder lawyer John Deaton believes that the SEC will resolve rather than hand over such abominable evidence.
It is suggested that these files may contain SEC analysis on XRP that concludes that digital assets are not security.
