SEC Cancels SAB 121 Crypto Accounting Bulletin

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On Thursday, the SEC introduced a new bulletin, SAB 122, which allows financial institutions to hold digital assets.

This revokes the previous controversial SAB 121, which required financial institutions to report crypto assets as liabilities on their balance sheets.

After withdrawing their previous guidance, the SEC stated that entities must disclose any risks and obligations associated with holding crypto assets.

This decision comes as Commissioner Mark Uyeda takes on the role of acting Chair, signaling a different approach towards the crypto industry compared to his predecessor Gary Gensler’s administration, which had stricter regulations for the industry.