The US Securities and Stock Exchange Commission (SEC) removed the controversial and popular SAB 121 crypto accounting guide after the departure of former president Gary Gensler.
Withdrawal of Sab 121
SAC, published in 2022, Sab 121, Staff Accounting Bulletin No. He announced that 122 was withdrawn with the publication. Sab 121 required companies that allowed crypto coins to be stored on behalf of their customers to define these crypto assets as obligation in their financial statements.
Criticism and legal struggles
Sab 121 was criticized by the crypto industry and lawmakers on the grounds that it increased compliance costs and prevented banks from providing digital assets storage services. In a statement, the SEC said that organizations should continue to use the Board of Financial Accounting Standards for Crypto Assets (FASB) or International Accounting Standards (IAS).
“Bye, Bye Sab 121! Its Not Been Fun, Hes Hester Peirce supported this decision as the president of the new crypto unit.
Management Change Determines My New Management
Following the resignation of Gary Gensler, Republican Commissioner Mark Uyeda started to work as a temporary president. Uyeda said that they aim to adopt a clearer and more predictable approach to regulate crypto beings by explaining the crypto task force led by Hester Peirce.
“SEC was primarily based on practice actions to edit the crypto, which created uncertainty,” said SEC, clarity and practical solutions for those looking for harmony were difficult to reach.
In return for industrial and legislative bodies
The crypto industry and the banking sector welcomed the withdrawal of SAB 121 as a step that promotes innovation and reduces the regulatory burden. Paige Pidano Paridon of Bank Policy Institute said that this decision would allow banks to regain their capacity to be the safe guards of digital assets.
The Republican Senator Cynthia Lummis from Wyoming celebrated its abolition by expressing that Sab 121 was “disaster .. In 2024, Mike Flood, who voted to abolish Sab 121 in 2024, described this retract as a positive sign of two -party support and change in US crypto policy.
SEC’s withdrawal of SAB 121 points to the beginning of a new era in crypto currency regulations in the USA. The new leadership aims to support the growth of the crypto industry by adopting a more flexible and innovative arrangement approach.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
