Say goodbye to the 'encryption law'! SEC officially announces cancellation of accounting standard SAB121

According to the latest announcement released by the US Securities and Exchange Commission (SEC), the regulatory agency has officially deregistered SAB121, which has been referred to as the "crypto law" by the industry.

According to previous reports by Zombie, SAB 121 is a controversial accounting guidance from the US Securities and Exchange Commission (SEC) that requires financial institutions holding customer cryptocurrencies to record them as liabilities on their balance sheets. Critics of the guidance argue that it will make cooperation between financial institutions such as banks and cryptocurrency companies very difficult.

SEC It is stated that companies must apply this change in their annual financial reports starting after December 15, 2024 (i.e. the 2025 financial report). However, companies can also choose to implement this change in any SEC filing (quarterly or annual financial report) in 2024 without waiting for the official effective date.

Cynthia Lummis, who was officially appointed as the chairperson of the Senate Digital Assets Subcommittee last night, stated in a statement:

SAB 121 is catastrophic for the banking industry and will only hinder innovation and progress in digital assets in the United States. I am pleased to see it abolished and put the SEC back on track to fulfill its expected mission