The SEC rescinds SAB 121, a cryptocurrency accounting policy that has been well received by the industry.

The U.S. Securities and Exchange Commission (SEC) has rescinded the controversial cryptocurrency accounting policy, SAB 121. On the 23rd (local time), the SEC announced that financial companies must now account for cryptocurrency holdings.
The company announced through a new accounting bulletin that it would revoke SAB121, which included a provision requiring that the company record such assets as liabilities in its financial statements.
"121" was a regulation announced in March 2022, and the cryptocurrency industry has continuously called for its repeal.
Hester is the SEC Commissioner and head of the SEC's Cryptocurrency Task Force.
Peirce expressed his joy in X's post, writing, "Goodbye, SAB 121! Not really funny."
French Hill, chairman of the Securities and Exchange Commission (SEC) said through X that he was pleased that the erroneous SAB 121 provision had been repealed and that he would maintain reserves for the assets entrusted to him.
"It is not standard financial services practice to do so," he said. Wiley, a leading opponent of SAB 121, also said in a statement.
Rep. Nickel said the regulation would prevent U.S. banks from storing cryptocurrency exchange-traded products (ETPs) at scale and would instead encourage non-banks to hold them.
The repeal of SAB 121 was made possible by SEC interim attorney general Robert M. Schumer, who was appointed under former President Donald Trump.
The bill to repeal SAB 121 initially received bipartisan support in both the House and Senate.
However, it was nullified by former President Biden's veto on June 1, 2024. The House then attempted to override the veto about five weeks later, but failed due to a lack of 60 votes.
It's over.