SEC Revokes SAB 121, Paving the Way for Banks to Hold Crypto

The U.S. Securities and Exchange Commission (SEC) has officially revoked the controversial Staff Accounting Bulletin 121 (SAB 121) and replaced it with a new policy, SAB 122. This change allows mainstream financial institutions in the United States to hold cryptocurrencies. The new bulletin requires financial entities to disclose the risks and obligations associated with safeguarding crypto assets. These changes will apply retroactively to fiscal years beginning after December 15, 2024, with early adoption permitted. Bank of America CEO Brian Moynihan has expressed readiness among U.S. financial institutions to custody crypto assets, contingent on improvements in the regulatory framework. The move has been celebrated by several notable figures in the industry.