US Lawmakers Applaud SEC Decision to Scrap SAB 121
The post US Lawmakers Applaud SEC Decision to Scrap SAB 121 appeared on BitcoinEthereumNews.com.
This was the first major crypto-related policy shift under the new acting Chair Mark Uyeda. President Donald Trump issued an executive order preventing the development of a US central bank digital currency (CBDC) and established a working group to position the US as a leader in cryptocurrency. However, Bitcoin advocates criticized the lack of focus on Bitcoin specifically in the plan. Meanwhile, Senator Elizabeth Warren clashed with Elon Musk, chair of the Department of Government Efficiency (DOGE), over government spending reforms. SEC Cancels Controversial SAB 121 The Securities and Exchange Commission (SEC) canceled its very controversial Staff Accounting Bulletin (SAB) 121, which required financial firms holding cryptocurrency for customers to record the assets as liabilities on their balance sheets. The decision was announced on Jan. 23 of 2025 through a new Staff Accounting Bulletin. This is a huge win for the crypto industry, which has been against the rule since it was introduced back in March 2022. Hester Peirce, SEC Commissioner and head of the agency’s crypto task force, celebrated the move in a social media post by saying, “Bye, bye SAB 121! It’s not been fun.” The rule faced a lot of criticism from both lawmakers and industry stakeholders for creating unnecessary administrative burdens on financial firms. Critics argued that requiring reserves against custodial crypto assets was inconsistent with standard practices in the financial services industry. House Financial Services Committee Chair French Hill called SAB 121 “misguided” and praised its cancellation. Representative Wiley Nickel also points out some concerns about how the rule could have prevented US banks from custoding crypto exchange-traded products (ETP), potentially concentrating risks in non-bank entities. Senator Cynthia Lummis described the rule as “disastrous for the banking industry” and a roadblock to American innovation in digital assets. The rule’s cancellation marks a very big policy shift…
Filed under: News - @ January 24, 2025 6:25 am