Breath of Crypto Money to Banks and Institutions: Controversial Decision Withdrawn in the US! - Coin Bulletin

The US SEC has opened a new era in crypto regulations by canceling the controversial SAB 121 guidance.

The U.S. Securities and Exchange Commission (SEC), withdrew the controversial crypto accounting guidance, which has been the subject of debate for a long time, following reactions from both lawmakers and the crypto industry.

The SEC took an important step towards a new era of crypto regulation after former SEC Chairman Gary Gensler's resignation on Thursday, according to a statement. The statement announced the publication of Staff Accounting Bulletin No. 122 and the cancellation of guidance on the accounting for platform users' crypto assets protection obligations.

SAB 121 was an SEC accounting guide that required the inclusion of crypto assets in the balance sheets of banks and corporate entities. This meant that the **assets should be shown as an obligation of the company and the risks should be disclosed in the financial statements. However, due to the backlash from both the crypto industry and some politicians and regulators, this guide has been withdrawn with SAB 122 currently in place.

(# Hester Peirce: Goodbye SAB 121

SEC Commissioner Hester Peirce shared on X platform, "Goodbye SAB 121! It wasn't much fun..." in relation to the matter. Peirce had previously described SAB 121 as a "harmful weed" in a statement she made last April.

Companies in the crypto sector have long expressed their concerns about the requirements of SAB 121. This guidance required companies offering crypto custody services to show their customers' crypto assets as liabilities on their balance sheets.

)# Joe Biden had vetoed

Last year, lawmakers voted to repeal this guidance, but it was vetoed by then-President Joe Biden. The proposal, which was approved by a vote of 228 to 182 in the House of Representatives and supported by a vote of 60 to 38 in the Senate, was supported by some Democrats, particularly Senate Majority Leader Chuck Schumer.

As Gensler's resignation on Monday shook the SEC's leadership, Republican Commissioner Mark Uyeda assumed the role of acting chairman. On Tuesday, Uyeda announced the establishment of a crypto task force under Commissioner Peirce's leadership.

In a statement made by the SEC on Tuesday, it was stated, "So far, the SEC has largely relied on retrospective and reactive enforcement actions to regulate crypto and has embraced innovative and untested legal interpretations in the process."

The statement emphasized the need for clarity regarding registration requirements and the need for practical solutions for those who want to register.