Investing.com– The Securities and Exchange Commission, under new leadership chosen by President Donald Trump, announced the withdrawal of a controversial framework that outlined strict disclosure requirements for financial firms holding crypto.
The SEC issued Staff Accounting Bulletin (SAB) 122, which rescinds SAB 121 and allows financial institutions that hold crypto on behalf of their customers to determine whether to declare the held digital assets as a liability.
SAB 121 required crypto custody providers and exchanges to treat customer holdings as both an asset and as a liability, with the latter being based on the high risk associated with holding crypto.
But this was a major sticking point for crypto firms, who had opposed the bulletin due to its alleged complication of accounting practices, which also served to restrict…
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