SEC Replaces SAB 121 with SAB 122 for Crypto Custody Accounting
- The SEC introduced Staff Accounting Bulletin No. 122 (SAB 122), replacing SAB 121.
- SAB 122 allows banks to use established accounting principles for assessing crypto custody risks.
- SAB 121 required companies to record customer crypto assets as liabilities, criticized for economic infeasibility.
- Representative Mike Flood attempted to overturn SAB 121 through H.J. Res. 109, which was vetoed by President Biden.
SAB 122 offers banks more flexibility in accounting for crypto custody, addressing criticisms of SAB 121’s economic impact on the banking industry and digital asset services.
Source (2.6)https://cryptobriefing.com/sec-eases-crypto-custody-accounting/?rand=59535
