The SEC has revoked controversial rules established under Staff Accounting Bulletin (SAB) 121, which required financial firms to classify their cryptocurrency holdings as liabilities on their balance sheets. This move, announced on January 23, 2025, indicates a significant shift in regulatory expectations for the crypto industry, which has long criticized SAB 121. SEC Commissioner Hester Peirce, leading the agency’s crypto task force, highlighted the revocation in a social media post, expressing relief over the decision. The SEC's new bulletin rescinds the interpretive guidance of SAB 121, initially implemented in March 2022, and marks a pivotal change that could affect how financial entities manage and report their cryptocurrency assets going forward. This development is seen as a potential easing of past restrictions, reflecting an evolving landscape for regulatory approaches to digital assets. Additional updates will be provided as this story develops.

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