SEC Overturns SAB 121
Following backlash from lawmakers and the crypto industry, the SEC has revoked its controversial crypto accounting guidance, marking another shift in the agency after former Chair Gary Gensler’s resignation.
On Thursday, the agency issued Staff Accounting Bulletin No. 122, which rescinds the previous interpretive guidance included in Topic 5.FF of the Staff Accounting Bulletin Series entitled “Accounting for Obligations to Safeguard Crypto-Assets Held for Platform Users.”
Commissioner Hester Peirce celebrated the revocation, having previously criticized the guidance as a “pernicious weed” in April.
The industry had also expressed concerns over the bulletin, which required custodial firms to record their customers’ cryptocurrencies as liabilities on their balance sheets.
