The American Bankers Association today revealed assistance for a bipartisan House expense that would forbid the SEC and federal banking companies from needing banks to consist of properties held in custody or safekeeping as a liability on the organization’s balance sheet. The Uniform Treatment of Custodial Assets Act would reverse an SEC publication from in 2015 in which company personnel stated that banks wanting to supply custodial services for digital properties financiers should keep those properties on-balance sheet. Such a requirement “is a departure from the banking industry’s historical practice of treating custody assets off-balance sheet,” ABA stated in a letter to House Financial Services Committee leaders.
“Banks have long provided safe and well-regulated custody services to investors for securities and other assets,” ABA stated. “However, the implications of [the SEC bulletin]mean few banks are currently offering custody services for digital assets, leaving consumers with few options for a safe, well-regulated custody service for digital assets.”
The expense’s sponsors are Reps. Mike Flood (R-Neb.), Ritchie Torres (D-N.Y.), French Hill (R-Ark.) and Wiley Nickel (D-N.C.).