SEC Rescinds SAB 121, Boosting Bitcoin Market Potential with SAB 122
The US SEC rescinded Staff Accounting Bulletin (SAB) No. 121 on January 23, easing accounting requirements for crypto custody by banks. This change, embodied in SAB 122, is expected to significantly influence Bitcoin's market dynamics.
Key Points
- SAB 121 required banks to classify customer-held cryptocurrencies as liabilities, complicating crypto service offerings.
- The removal of SAB 121 allows banks to better integrate Bitcoin and other cryptocurrencies into their operations.
- SEC Commissioner Hester Peirce and industry leaders view this as a major positive shift for Bitcoin.
- Experts believe the implications of SAB 122 will surpass those of the upcoming US Bitcoin Reserve.
- Increased institutional participation in the crypto market is anticipated following the regulatory easing.
- Brian Moynihan, CEO of Bank of America, indicated potential for broader crypto adoption under new rules.
- At press time, Bitcoin was trading at $105,466.
