On Thursday, the U.S. Securities and Exchange Commission (SEC) rescinded Staff Accounting Bulletin (SAB) No. 121, signaling a shift in its approach to regulating crypto-assets under Commissioner Hester Peirce, who now heads the agency's newly formed crypto task force.
Introduced in March 2022, SAB 121 required companies to record a liability and a corresponding asset for crypto assets held on behalf of users.
Critics, including Peirce, argued that the guidance added unnecessary complexity and created an uneven playing field for crypto platforms.
Under the revised framework, companies will now evaluate obligations to safeguard crypto-assets using broader accounting standards, such as U.S. GAAP contingency rules and IFRS guidelines.
'SEC Can Do Better': Hester Peirce to Lead New Crypto Task Force
One day after SEC Chair Gary Gensler departed alongside the inauguration of President Donald Trump, the U.S. Securities and Exchange Commission announced a crypto task force Tuesday in a pointed announcement that's critical of the regulator's past actions. "Drawing from talented staff across the agency, the task force will collaborate with Commission staff and the public to set the SEC on a sensible regulatory path that respects the bounds of the law," the statement reads. "To date, the SEC has...
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 Decrypt.
“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.
President Biden Vetoes Pro-Crypto Resolution, Defends SEC's Judgement
Capping off a dizzying week in both crypto and political spheres, U.S. President Joe Biden on Friday notified Congress that he has vetoed a bipartisan-passed resolution that sought to roll back a Security and Exchange Commission policy that critics said discourages banks from offering crypto custody services. “This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC's broader authorities regarding accounting practices.” reads the notice from the White House. “...
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."
Trump Executive Order Paves Way for Federal Crypto Reserve—But Doesn't Mention Bitcoin
President Donald Trump signed his first crypto-related executive order on Thursday, formally establishing a Presidential Working Group on Digital Asset Markets and laying the groundwork for exploring some of his campaign promises—including potentially establishing a national reserve for Bitcoin and other assets. The Presidential Working Group will advise Trump on matters related to crypto policy and inform his decision-making with regards to the industry. Trump previously announced that the grou...
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."
Editor's note: This story was updated after publication with additional details.
