On Thursday, the Securities & Exchange Commission (SEC) introduced SAB 122, revoking the controversial SAB 121.
This move allows financial institutions to custody digital assets without having to list them as liabilities on their balance sheets. The previous guidance had caused much debate and criticism within the industry.
In its public statement, the SEC announced SAB 122, which rescinds the interpretive guidance under Section FF of Topic 5 in the Staff Accounting Bulletin Series, titled “Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users.”
The new bulletin also stresses the importance of disclosing risks and obligations related to safeguarding crypto assets.
This decision is seen as a positive development for the crypto industry, especially considering the recent changes in SEC leadership. With Mark Uyeda taking on the role of acting Chair, there has been a shift in approach towards the industry as compared to the administration led by former Chair Gary Gensler, which had a more stringent stance on regulating cryptocurrencies.
