Quick Facts

The US Securities and Exchange Commission (SEC) has revoked its controversial accounting rule, SAB 121, which discouraged financial firms from holding cryptocurrencies.

The Background

SAB 121, also known as Accounting Standards Update (ASU) 2022-03, was issued by the SEC in March 2022. The rule was designed to provide guidance to companies on how to account for digital assets, such as cryptocurrencies and tokens, on their financial statements.

The Consequences of SAB 121

The implementation of SAB 121 had already begun to have a chilling effect on the crypto industry. Many financial institutions and companies had been hesitant to hold or invest in digital assets, due to the uncertainty and potential risks associated with the new accounting rule.

The Revocation of SAB 121

On [Date], the SEC announced that it was revoking SAB 121, effective [Date]. The decision was hailed as a major victory by the crypto community, who saw it as a significant step towards greater transparency and clarity around the accounting of digital assets.

What Does This Mean for the Crypto Industry?

The revocation of SAB 121 is a major game-changer for the crypto industry. It removes a significant obstacle to the adoption of digital assets by financial institutions and companies, and opens up new opportunities for investment and growth.

The Road Ahead

The revocation of SAB 121 is just the beginning of a new era for the crypto industry. As the industry continues to evolve and mature, we can expect to see greater clarity and consistency around the accounting of digital assets.