The American securities regulatory body SEC withdrew SAB 121 & introduced SAB 122, confirming Bitcoin adoption is allowed 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 accounting for obligations to safeguard crypto-assets held for platform users, advising entities to recognize both an asset and a corresponding liability on their balance sheets, measured at the fair value of the crypto-assets. Basically, this rule was a very big barrier for the financial institutions to connect with Cryptocurrencies.
On 24 Jan 2025, The SEC body replaced SAB 121 with SAB 122, granting financial institutions discretion in classifying held digital assets as liabilities, allowing them to assess their obligations using broader accounting standards.
SAB 122 decreased the compliance costs and unlocked the door for banks to provide crypto custody services easily.
The SEC commissioner Hester Pierce, popularly known as Crypto mom in the crypto space, also shared her happiness for this new development and said bye-bye to SAB 121.
US Senator Cynthia Lummis from Wyoming also shared her happiness with this new development and said that the journey toward the adoption of innovation & advancement has been started.
All these developments show that the newly appointed acting chairman, Mark Uyeda of the SEC body, is open to pushing the adoption of cryptocurrencies in the US financial ecosystem under friendly rules & laws.
Thanks to Donald Trump, who appointed Uyeda as a crypto-friendly SEC chairman to lead America in terms of crypto & blockchain adoption.
To create a set of crypto regulatory frameworks in the US jurisdiction, US President Trump signed an executive order on cryptocurrency. This decision will establish the Presidential Working Group on Digital Asset Markets to develop a federal regulatory framework, including stablecoin & crypto-related challenges.
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