The US SEC Officially Revokes SAB 121 Blocking Banks from Custodying Cryptocurrency

BlockBeats News, January 24th, according to the official website, the U.S. SEC has issued SAB 122, formally revoking SAB 121 that prevented banks from custodying cryptocurrency.

It is reported that Staff Accounting Bulletin 121 (SAB 121) was a guidance issued by the U.S. SEC in 2022, requiring companies holding cryptocurrency to record these assets on their balance sheets and disclose related risks. This guidance applied to all SEC-regulated entities, especially banks and financial institutions, potentially subjecting them to higher capital requirements, thereby affecting their ability to provide cryptocurrency custody services.