Catenaa, Friday, January 24, 2025 – The US Securities and Exchange Commission (SEC) on Thursday repealed a controversial cryptocurrency accounting directive, clearing the way for banking institutions to provide custodial services for digital assets.
Hester Peirce, an SEC commissioner and prominent cryptocurrency advocate, announced the cancellation of Staff Accounting Bulletin No. 121, commonly referred to as SAB 121.
“Bye, bye SAB 121! It’s not been fun,” Peirce tweeted.
Senator Cynthia Lummis (R-WY), newly named chair of the Senate Banking Subcommittee on Digital Assets, celebrated the repeal and commended Peirce’s leadership. Lummis has been a vocal critic of SAB 121, which required companies holding customers’ cryptocurrencies to list them on their balance sheets, creating significant barriers to providing custody services.
The directive’s repeal follows bipartisan efforts in Congress, where both chambers voted unanimously to overturn the rule. A veto by the Biden administration in 2024 delayed the repeal, but the cryptocurrency sector gained renewed optimism under Donald Trump’s presidency.
The shift aligns with Trump’s executive orders halting progress on central bank digital currencies and promoting Bitcoin as a reserve asset.
Bitcoin’s price was stable at $103,487.86 at the time of the announcement, reflecting cautious optimism within the digital asset market.
The repeal of SAB 121 marks a significant milestone for the cryptocurrency industry, potentially broadening institutional participation and bolstering the market’s infrastructure.
