Davis Polk partner Gabe Rosenberg was quoted in American Banker on an SEC accounting bulletin from March 2022 that requires most SEC registrants that hold crypto assets for their clients to record that risk on their balance sheets as a liability. "I've never seen something this significant come out of something that's usually pretty bureaucratic in terms of staff bulletins," said Gabe. "I think there's a real question here about whether this is an appropriate way to make policy, especially policy that's going to have a really big impact on the ability of banks to provide a service that is increasingly important and increasingly relevant."

Discussing banking regulators’ next moves, Gabe said that there are still levers for them to pull based on how much of a capital impact the regulators want the rule change to have.

How the SEC threw a wrench in bank regulators’ crypto custody efforts,” American Banker (June 29, 2022) (subscription required)