SEC Reverses 2022 Digital Asset Custody Guidance with New Bulletin
The U.S. Securities and Exchange Commission (SEC) today issued a new staff accounting bulletin, SAB 122, which rescinds its previous guidance, SAB 121, issued in 2022. The original rule had required SEC-registered firms to record a liability for the crypto assets they hold in custody at their fair market value.
The SEC’s decision to reverse this guidance comes amid ongoing debate about how digital assets should be treated by financial institutions. SAB 122 was published the same day former President Donald Trump announced the formation of a government task force to review potential changes to digital asset regulations. Additionally, the SEC, under Acting Chairman Mark Uyeda, has also launched its own task force to develop a clearer regulatory framework for digital assets.
This move marks a shift in the SEC’s approach, with the agency acknowledging the need for greater clarity in crypto regulation to foster innovation while addressing concerns over fraud and legal uncertainty.
