The United States House of Representatives has unanimously passed a bill that reverses the controversial Securities and Exchange Commission (SEC) guidance that prohibits banks from owning cryptocurrencies. The bipartisan bill, known as H.J. Res 109, overturns the SEC’s Special Accounting Bulletin 121 (SAB 121), which requires banks to include their customers’ crypto assets on their balance sheets, unlike traditional assets such as securities.
Republican Party Representative Mike Flood, who introduced the resolution, argued that SAB 121 was unfair to banks that provide custodial services for cryptocurrencies, as custodial assets are typically considered off-balance sheet. He believes that this guidance hinders banks from fully participating in the growing crypto market.
However, President Joe Biden’s administration has expressed its intention to veto any joint resolution concerning crypto policy at the SEC. In a statement, the White House stated that it strongly opposes the efforts of House representatives seeking to disrupt the SEC’s mission of protecting investors in the crypto-asset markets and safeguarding the broader financial system.
Meanwhile, the Australian Taxation Office (ATO) is seeking personal data and transaction details from up to 1.2 million cryptocurrency exchange users in an effort to crack down on tax obligations related to crypto. The ATO believes that this data will help identify traders who may have failed to report and pay taxes on their crypto trades. Cryptocurrencies are considered taxable assets in Australia, and traders are required to pay capital gains tax on profits from selling crypto assets.
In South Korea, the ruling Democratic Party plans to request that the Financial Services Commission (FSC) review its interpretation of the legal status of spot Bitcoin exchange-traded funds (ETFs). An official from the Democratic Party policy committee stated that the request would be made after the opening of the National Assembly in June. The party, which won the April elections, holds a majority of seats in the legislative body. The FSC previously stated that Korean securities firms could potentially violate the Capital Markets Act by listing foreign spot ETFs, following the approval of spot BTC ETFs in the United States.
In India, global cryptocurrency exchange Binance has received approval from the Indian Financial Intelligence Unit to offer its services in the country. This approval makes Binance the second offshore crypto exchange to receive regulatory approval, following KuCoin. In December 2023, Binance and other foreign crypto exchanges received a notice of noncompliance from the Indian Finance Ministry. As a result, the ministry instructed its IT department to block access to the banned crypto platforms in India. However, Binance and KuCoin have now gained approval to resume their operations in the Indian market.