The U.S. SEC has rescinded the controversial Staff Accounting Bulletin 121 (SAB 121), replacing it with SAB 122, simplifying crypto custody regulations for financial institutions.
The repeal removes the requirement for firms to classify customer-held digital assets as liabilities and now focuses on disclosing risks and obligations associated with safeguarding crypto.
The changes, effective retroactively for fiscal years starting after December 15, 2024, have been celebrated by financial leaders like Bank of America CEO Brian Moynihan, who noted U.S. banks are ready for crypto custody with regulatory clarity.
Industry figures and lawmakers credit the Trump administration for this development. House Financial Services Committee Chairman French Hill applauded the move, calling the prior rule misguided. Acting SEC Chair Mark Uyeda’s leadership reflects a more balanced crypto regulatory approach.
Introduced in 2022, SAB 121 faced criticism for hindering banks’ ability to provide crypto services. The revocation signals a more crypto-friendly stance, bolstering innovation and ensuring U.S. competitiveness in the global digital asset space.
Additionally, Trump’s executive order established a framework for digital asset regulation and a strategic national crypto reserve, positioning the U.S. as a leader in the sector.
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