The SEC has rescinded the Staff Accounting Bulletin No. 121, which required banks to classify customer-held bitcoin and crypto assets as liabilities. This announcement signifies a shift in the SEC's regulatory stance under Acting Chair Mark Uyeda and comes shortly after Gary Gensler's resignation. Critics of SAB 121, including SEC Commissioner Hester Peirce, argued it discouraged banks from offering crypto services. The rescindment is expected to facilitate greater integration of crypto custody into financial services, marking a transformative moment for the industry as regulators aim to establish clearer rules for cryptos moving forward.
"Bye, bye SAB 121! It's not been fun," Peirce wrote in a post on X (formerly Twitter) on Thursday, following the SEC's issuance of Staff Accounting Bulletin No. 122, which formally rescinds the guidance.
"To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way," the agency acknowledged in a statement on Tuesday.
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