Nikolas Sargeant
The U.S. Securities and Exchange Commission (SEC) has officially rescinded its controversial rule, SAB 121, which required financial firms to treat cryptocurrencies held on behalf of customers as liabilities on their balance sheets. Introduced in March 2022, the rule was met with widespread criticism from the crypto industry, which argued that it created unnecessary administrative burdens. Key figures like Representative Wiley Nickel and Senator Cynthia Lummis also voiced concerns, claiming the rule hindered U.S. banks from securely holding crypto products and stifled innovation. The SEC’s move to revoke SAB 121 represents a significant shift in the agency’s approach under President Trump and acting chair Mark Uyeda.
SEC Moves to Ease Crypto Regulations
This cancellation marks the first major regulatory change under the new administration, signaling a potential easing of restrictions for financial institutions and further steps toward integrating digital assets into mainstream finance. They recently formed a task force to better regulate crypto.
With the election of Donald Trump, Bitcoin entered a bull era, as he was heavily supported by the crypto industry and Elon Musk. However, cryptocurrency went unmentioned on his first day. This SEC ruling marks a milestone in that it is the first change in law under the Trump Administration meant to promote crypto adoption.
