The post SEC Revokes Controversial Crypto Accounting Guidance, Raising Questions About Future Regulation of Bitcoin appeared on BitcoinEthereumNews.com.

The U.S. SEC’s latest decision to revoke accounting guidance for cryptocurrencies signifies a pivotal moment in regulatory practices that affect the industry. This action reflects ongoing tension between lawmakers and regulatory bodies, showcasing the increasing scrutiny faced by crypto accounting standards. SEC Commissioner Hester Peirce openly expressed her relief, stating, “Bye, bye SAB 121!” on X, indicating a notable shift in the Commission’s approach. This article discusses the SEC’s revocation of crypto accounting guidance, a pivotal shift in crypto regulation following scrutiny from lawmakers and industry stakeholders. SEC Revokes Controversial Crypto Accounting Guidance The U.S. Securities and Exchange Commission (SEC) has taken a significant step by revoking the controversial accounting guidance known as Staff Accounting Bulletin No. 121, which previously mandated firms that custody cryptocurrencies to treat customer holdings as liabilities on their balance sheets. This move, occurring under new leadership following Gary Gensler‘s resignation, signals a broader reevaluation of how regulatory bodies handle cryptocurrency classifications and obligations. The decision comes after intense debates within the legislative framework and widespread concerns raised by industry participants regarding the implications of maintaining such liabilities. Background of SAB 121 and Its Repeal Efforts Introduced in 2022, SAB 121 was intended to clarify accounting for obligations involving crypto-assets but was met with criticism from many quarters of the industry. Stakeholders argued that the requirement inaccurately represented the financial position of custodial firms and discouraged institutional investment in crypto. Notably, during the previous year, bipartisan efforts in Congress attempted to repeal the directive, demonstrating a significant pushback from both lawmakers and industry leaders who sought to create a more favorable regulatory environment. Despite the House passing the repeal measure with a considerable majority, it was ultimately vetoed by then-President Joe Biden. Implications for the Crypto Market The revocation of SAB 121 is poised to reshape…

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Filed under: News - @ January 24, 2025 12:25 am