FOIA Filed By Blockchain Association In Order To Probe SAB121 Guidance
The Blockchain Association has submitted a Freedom of Information Act (FOIA) request to investigate if the United States Securities and Exchange Commission (SEC) is secretly advising certain banks on avoiding SAB121, potentially giving preferential treatment to traditional banks.
Examining Possible Favoritism
Previously, the association sought information on the de-banking of crypto firms in the US, focusing on allegations of unfair account closures and refusals. The Blockchain Association has filed a FOIA appeal to explore whether the SEC is guiding specific custody institutions to evade SAB121 requirements.
This could indicate a new strategy, potentially offering exemptions to a few traditional banks while leaving crypto service providers at a disadvantage. SAB121, introduced in 2022, requires companies holding crypto to list it on their balance sheets, creating significant capital implications. Despite strong bipartisan support to repeal the bulletin, President Biden vetoed the repeal.
De-Banking Concerns
In March 2023, the Blockchain Association requested documents that the FDIC, Federal Reserve, and OCC have in order to investigate claims of unjust account closures and denials affecting crypto firms, including those linked to the failures of Signature, Silicon Valley Bank, and Silvergate.
Kristin Smith, CEO of the Blockchain Association, highlighted the need for fair treatment of crypto businesses and encouraged impacted parties to share their experiences confidentially. This is especially important as centralized exchanges are becoming increasingly controlled by the government and large conglomerates, something which the crypto community wants to do away with if possible.
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