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US Lawmakers Criticize Crypto Policies For Placing Customers at Risk

Tris Bell

Summary: US lawmakers have criticized crypto accounting guidelines for putting consumers at a greater risk for loss, according to Cointelegraph. The guidelines ask crypto custodians to recognize crypto assets they do not hold as a liability and request that all digital assets be backed by another asset. However, Senator Cynthia Lummis and Representative Patrick McHenry argued ...

US lawmakers have criticized crypto accounting guidelines for putting consumers at a greater risk for loss, according to Cointelegraph.

The guidelines ask crypto custodians to recognize crypto assets they do not hold as a liability and request that all digital assets be backed by another asset.

However, Senator Cynthia Lummis and Representative Patrick McHenry argued these would discourage companies from offering custody services. 

“SAB 121 places customer assets at greater risk of loss if a custodian becomes insolvent or enters receivership, violating the SEC’s fundamental mission to protect customers,” they said.

Author: Tris Bell

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