SEC Rescinds Anti-Crypto SAB 121
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The SEC has officially rescinded Staff Accounting Bulletin No. 121 (SAB 121), which previously required crypto platforms to account for safeguarding crypto-assets as liabilities. This change, announced through Staff Accounting Bulletin No. 122 (SAB 122) on January 23, removes the controversial guidance and allows entities to determine liabilities related to safeguarding risks under broader accounting standards like FASB ASC Subtopic 450-20. This decision significantly impacts how crypto companies report risks and obligations tied to safeguarding digital assets held on behalf of users.
