With the repeal, banks can make direct investments in cryptocurrencies.
US banks are likely to start offering BTC services soon.
On Thursday, January 23, the new management of the United States Securities and Exchange Commission (SEC) ordered the repeal of SAB121, a rule that prevented banks from offering custody services for bitcoin (BTC) and other cryptocurrencies.
According to one publication of the SEC held yesterday, it was decided to annul SAB121 through a new Staff Accounting Bulletin (SAB), number 122. This decision is part of the new administration of the SEC, led momentarily by Mark Uyeda.
Uyeda is recognized for his defense of the cryptocurrency ecosystem and was recently named interim president of the SEC by President Donald Trump, as reported by CriptoNoticias.
According to the new bulletin, entities must carry out the termination fully retroactively in annual periods beginning after December 15, 2024.
The SEC also reminds entities that they must continue to take into account the Existing Requirements for Providing Disclosures that allow investors to understand an entity’s obligation to safeguard crypto assets held for others.
SAB121 was issued by the SEC to address accounting and disclosure related to the protection of crypto assets for companies that offer custody services for such assets. required companies that recognized a liability and a corresponding asset on their balance sheets for the cryptoassets they protect for clients.
After the news, major figures in the bitcoin ecosystem came out to celebrate the decision. Michael Saylor, the CEO of MicroStrategy, assured that now banks “can now custody bitcoin.” Meanwhile, Hester Peirce, commissioner of the SEC who has always been in favor of the cryptocurrency ecosystem, celebrated in X the decision and commented: “Goodbye, SAB 121! “It hasn’t been fun.”
The annulment of SAB121 now implies an open letter for financial entities that want to approach bitcoin. One of these first banks has been BNY Mellon, as reported by CriptoNoticias.
Furthermore, as various bankers have said, such as the CEO of Bank of America, banks will begin to integrate cryptocurrencies if US regulations allow it. The CEO of Circle, the company that issues the stablecoin USD Coin (USDC), has also stated that Trump’s regulations will bring cryptocurrencies to banks.
These new SEC measures occurred just when Trump signed an executive order to create a reserve of digital assets, as CriptoNoticias reported yesterday Thursday, thus fulfilling his promise of a BTC treasure, although including other crypto assets.
This seems to be the beginning of a wave of actions in favor of the ecosystem by Donald Trump’s government, which can be beneficial for the cryptocurrency market. With the repeal of SAB121, US banks can make direct investments in cryptocurrencies, and they will likely start offering services with BTC soon.
The SEC’s action not only changes the dynamics of cryptocurrency custody by banks, but also reflects a shift in regulatory policy toward greater acceptance and regulation of this market in the United States. This move could encourage more financial institutions to explore and adopt emerging technologies and digital assets. in your daily operations and investment strategies.
