The US Securities and Exchange Commission (SEC) has decided to repeal a controversial rule that required financial firms to classify cryptocurrencies as liabilities on their balance sheets.
The new Staff Accounting Bulletin issued on January 23 states that the SAB 121, issued in March 2022, will no longer be in effect. This is a rule that the crypto industry has been advocating against for some time.
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In a post on X, SEC Commissioner Hester Peirce, who also heads the agency's cryptocurrency task force, celebrated the cancellation of SAB 121 saying "Bye, bye SAB 121!… It’s not been fun."
The SEC initially issued SAB 121 in March 2022, forcing financial firms to report cryptocurrencies held on behalf of customers as liabilities on their balance sheets.
The cryptocurrency industry strongly opposed this move, arguing it would create unnecessary administrative burdens.