Photo by Ibrahim Boran on Unsplash
There was some chatter on the guidance issued by the U.S. Securities and Exchange Commission on how lenders should treat customers' digital assets. So the SEC made it clear that these digital assets should be accounted for as liabilities and the risks need to be disclose to the asset investors.
I was quite surprise with this. Reason being I would have thought that these were "standard disclosures" required as part of the lender/ financial institutions duty to responsibly account for the funds entrusted on them.
So if this was not a "mandate" to begin with, I would guess that with the introduction of this new SEC guidance, there would be significant repercussions and probably costs to the lenders/ financial institution. Definitely a topic to keep a close eye on. After all, regulatory governance over crypto matters are indeed an unchartered frontier.