The US Securities and Exchange Commission has rescinded Staff Accounting Bullet 121 (SAB 121), which required financial firms to classify crypto holdings as liabilities. This move sparked debate within the crypto community regarding Bitcoin custody. While some support the rollback as a step forward for banks to hold Bitcoin, critics argue it diverges from Bitcoin's foundational principles as outlined by Satoshi Nakamoto. Analysts like Jacob King express concern, claiming that reliance on banks undermines the essence of Bitcoin, emphasizing the need for personal custody. The repeal reignites discussions on institutional adoption versus self-custody, with proponents asserting that institutional involvement could enhance mainstream acceptance. However, there's an ongoing fear that this might dilute Bitcoin's decentralized core. Key figures like Michael Saylor champion the transition to institutional custody, while others, including Ethereum co-founder Vitalik Buterin, criticize this approach, suggesting it contradicts the fundamental ethos of cryptocurrency.

Source 🔗