The Securities and Exchange Commission on Thursday repealed a cryptocurrency accounting directive that prevented banking institutions from providing custodial services for digital assets.
What happened: SEC commissioner Hester Peirce, who leads the recently formed cryptocurrency task force, announced the cancellation of the Staff Accounting Bulletin No. 121 policy, also known as Hester Peirce,
“Bye, bye SAB 121! It’s not been fun,” the commissioner also known as “Crypto Mom,” wrote.
Senator Cynthia Lummis (R-WY), named Chair of the Senate Banking Subcommittee on Digital Assets earlier in the day and a vocal critic of the guidance, celebrated the development and thanked Pierce for her leadership.
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Why It Matters: The SAB 121 mandated that companies holding customers’ cryptocurrencies must record them on their balance sheets, curtailing their ability to participate in digital asset custody services.
Both the Senate and the House of Representatives voted unanimously to overturn the directive. However, the resolution was vetoed by the White House under former President Joe Biden in June of 2024.
Since Donald Trump’s presidential victory, the cryptocurrency industry had become increasingly hopeful that the directive would be repealed.
The SAB 121 development comes after Trump signed executive orders, halting progress on central bank digital currencies and exploring the case of a Bitcoin BTC/USD reserve.
Price Action: At the time of writing, Bitcoin was exchanging hands at $103,487.86, mostly flat in the last 24 hours, according to data from Benzinga Pro.
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