The US securities regulator SEC withdrew SAB 121 and introduced SAB 122, confirming that Bitcoin adoption is permitted under easy rules among financial institutions.
In March 2024, the United States Securities and Exchange Commission (SEC) introduced Staff Accounting Bulletin No. 121 (SAB 121), under the leadership of Gary Gensler. Under SAB 121, it was mandatory to provide guidance on the accounting for obligations to safeguard cryptoassets held by platform users, advising entities to recognize both an asset and a corresponding liability on their balance sheets, measured at the fair value of the cryptoassets. . . Basically, this rule was a very big barrier for financial institutions to connect with Cryptocurrencies.
On January 24, 2025, the SEC replaced SAB 121 with SAB 122, granting financial institutions discretion to classify digital assets held as liabilities, allowing them to evaluate their obligations using broader accounting standards.
SAB 122 decreased compliance costs and opened the door for banks to easily provide cryptocurrency custody services.
SEC Commissioner Hester Pierce, popularly known as Crypto mom in the crypto space, also shared her happiness over this new development and bid farewell to SAB 121.
US Senator Cynthia Lummis of Wyoming also shared her happiness with this new development and said that the journey towards embracing innovation and advancement has begun.
All these developments show that the newly appointed Acting Chairman Mark Uyeda of the SEC body is open to boosting the adoption of cryptocurrencies in the US financial ecosystem under friendly rules and laws.
Thanks to Donald Trump, who appointed Uyeda as the crypto-friendly SEC Chairman to lead the United States in terms of cryptocurrency and blockchain adoption.
To create a set of crypto regulatory frameworks in the US jurisdiction, US President Trump signed an executive order on cryptocurrencies. This decision will establish the Presidential Task Force on Digital Asset Markets to develop a federal regulatory framework, including challenges related to stablecoins and cryptocurrencies.
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