SAB 121: Securities and Exchange Commission canceled the base of encrypted currency accounting with the dawn of the Trump era
The US Securities and Stock Exchange (SEC) officially withdrew the employee accounting bulletin No. 121 (SAB 121), which is the base of encrypted currencies that were presented in 2022, just days after the head of the Securities and Stock Exchange Commission Gary Ginsler.
The bulletin, which was imposed on companies that possess coded currencies on behalf of customers, was replaced by the registration of these assets as obligations, with employee accounting leaflet No. 122, indicating a shift in organizational policy.
Goodbye, bye SAB 121! It was not fun: Sec.gov | Accounting Bulletin of Employees No. 122
Under the updated framework, companies will evaluate their obligations to protect encrypted assets using broader accounting standards, including emergency rules for generally accepted accounting principles in the United States and the guidelines for international standards to prepare financial reports.
Reviews retroactively apply to the financial years that start after December 15, 2024, with the provisions of early application.
The SAB 121 withdrawal comes amid many leadership changes in the Securities and Exchange Commission.
Republican Commissioner Mark Oida assumed the role of the president, while a new work team was created for cryptocurrencies, led by Hyster Peres, to develop more clear organizational frameworks.
In a statement, the Securities and Exchange Commission acknowledged criticism directed at its previously enforced approach to the organization of encrypted currencies, describing it as a source of uncertainty. The new team aims to provide clear and practical solutions to comply with this industry.
SAB 121 Criticism
Since its issuance, SAB 121 has faced widespread criticism from the cryptocurrency industry, legislators and financial institutions.
The opponents argued that the directives increased the costs of compliance, and the banks prevented from providing digital assets maintenance services, and lacked adequate public consultations.
The banking sector expressed his concerns that SAB 121 hindered their ability to work as guardians of digital assets, while defenders of cryptocurrencies and legislators saw it as a step targeting specifically the digital asset industry.
The Securities and Stock Exchange Commissioner Hester Peres described al -Qaeda as excessive in strictness and an obstacle to innovation.
Gary Ginsler, former head of the Securities and Exchanges Authority, who supported the base, defended this rule as a necessary measure to protect investors in bankruptcy scenarios, citing cases where encrypted customers’ assets were not protected from creditors.
However, the efforts made to cancel SAB 121 in 2024, including the decision of the two parties approved by Congress, was rejected by the then President Joe Biden.
Reactions to cancel SAB 121
The cryptocurrency industry and financial institutions welcomed the removal of SAB 121 as a step towards reducing organizational burdens and enhancing innovation.
Beige Budda Paridon, the co -chair of organizational affairs at the Institute of Banking Policy, praised the decision, noting that it will enable banks to manage digital assets safely.
Senator Sentea Lomes, the republican supporter of encrypted currencies and head of the Senate Digital Sub -Assets Committee, described the base as “catastrophic” and celebrated its abolition.
SAB 121 was catastrophic on the banking industry, and only impeded the American innovation and advanced digital assets. I feel overwhelmed to see it is canceled and the Securities and Exchange Commission will be returned to the right track to achieve its intended mission.
Representative Mike Floud, who submitted a decision to cancel SAB 121 in 2024, described the withdrawal as a positive indication of the two parties’ support for a more balanced American encryption policy.
HJ accuracy. 109 received the two parties ’vote in the House of Representatives by a majority of 228-184.
The Securities and Stock Exchange Commission’s decision to withdraw SAB 121 reflects a broader transformation under the new administration led by the pro -co -co -currencies of Donald Trump.
SAB 121 Publisher: Securities and Exchange Commission canceled the base of encrypted currency accounting with the dawn of the Trump era, appeared for the first time on Invezz
