The US SEC has withdrawn the controversial SAB 121. The previous rule required banks and companies to list customer cryptocurrency holdings in their statements. The new rule, SAB 122, directs companies to use the Financial Accounting Standards Board rules or International Accounting Standard provisions.
The previous SAB 121 drew significant backlash from the cryptocurrency community. The rule change will make it easier for banks to offer crypto exposure to clients. The new rule does not require firms to list customer crypto holdings. Firms have to report risks if something goes awry.
According to the statement, “The staff reminds entities that they should continue to consider existing requirements to provide disclosures that allow investors to understand an entity’s obligation to safeguard crypto-assets held for others.“
SEC Commissioner Hester Peirce took to X and shared the cryptocurrency-positive news.
The new rule change by the SEC could have a positive impact on the cryptocurrency market. If banks increase their crypto offerings to clients, it could lead to a market rally. Many financial institutions have opened their doors to crypto after increased client demand.
US President Donald Trump has signed an executive order to establish a digital asset stockpile. The move led to an uptick in investor sentiment. The cryptocurrency market faced a slight recovery after Trump’s decision.
Both developments could lead to a gradual increase in funds in cryptocurrencies. Trump has said that he wants the crypto industry to thrive in the US. Many anticipate lenient regulations over the next four years. We may witness an extended bull run under Trump’s leadership.