On Thursday, the U. S. Securities and Exchange Commission ( SEC ) rescinded Staff Accounting Bulletin ( SAB) No. 121, signaling a change in its approach to governing crypto-assets under Commissioner Hester Peirce, who now heads the company’s recently formed crypto work force.

Introduced in March 2022, SAB 121 required businesses to report a responsibility and a matching resource for crypto goods held on behalf of customers.  

Critics, including Peirce, argued that the advice added unnecessary difficulty and created an unequal playing field for bitcoin systems.

Under the revised model, companies will then review obligations to prevent crypto-assets using broader finance standards, such as U. S. GAAP contingency rules and IFRS guidelines.  

The changes are retroactive for fiscal years beginning after December 15, 2024, with early adoption allowed.

That move alone could mark the beginning of a new chapter for crypto in the United States, Blockchain Association ’s Kristin Smith previously told 

“It really opens up a whole new market, ” she said at the time.

Even though  Bitcoin  and  Ethereum spot ETFs are currently trading on Wall Street, an abundance of yellow tape and crypto-related anxieties have kept most U. S. investors and businesses on the sidelines.

Peirce, a vocal advocate for clearer crypto regulation, has emphasized collaboration and practical solutions in her new role.   Her task force aims to reduce reliance on enforcement-led tactics, which were a hallmark of former SEC Chair Gary Gensler’s tenure.

The SEC reiterated the need for companies to provide transparent disclosures to investors under existing rules as it adjusts its regulatory posture toward crypto.

In 2024, a bipartisan coalition of U. S. lawmakers passed a resolution in both houses that would’ve overturned SAB 121, but President Biden vetoed the bill, defending the judgment of the regulator.

“This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices. ” the notice from the White House read. “My Administration will not support measures that jeopardize the well-being of consumers and investors. “

But it’s a new era under President Donald Trump, who was inaugurated Monday after running a pro-crypto campaign. On Thursday, Trump signed his first crypto executive order, which establishes a presidential working group for advocating for crypto regulation, as well as exploring a potential national crypto stockpile. It also prohibits the creation of a central bank digital currency, or CBDC, aka a “digital dollar. “

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