Bank Agencies Weigh Crypto Accounting Impact on Capital Rules

The top accountant at the Federal Reserve urged banks and financial institutions to take questions about how to report their cryptocurrency holdings and related arrangements directly to another Washington regulator: the Securities and Exchange Commission.

SEC crypto accounting guidance, issued this spring, elevated the role of accounting as bank agencies worked to understand how to regulate financial institutions’ involvement in the emerging market and ensure banks can mitigate risks related to such products, Lara Lylozian, chief accountant to the Fed, told a banking conference hosted by the American Institute of CPAs Tuesday.

• The SEC staff guidance calls for companies ...