The U.S. Securities and Exchange Commission (SEC) has withdrawn a regulatory guidance known as Staff Accounting Bulletin 121 (SAB 121) under the Trump administration. This removes a requirement for banks to list cryptocurrencies held for clients as liabilities, allowing them to offer cryptocurrency custody services more easily. The elimination of SAB 121 is expected to lower operational costs and regulatory barriers for financial institutions. Banks like Charles Schwab are optimistic about offering more comprehensive crypto services with the reversal. The financial sector's response to the policy shift has been largely positive, and Bitcoin's price increased following the news. The crypto industry is hopeful for further regulatory relaxations under the more crypto-friendly stance of the Trump administration. The regulatory rollback aims to stimulate economic activities related to cryptocurrencies, integrate them into mainstream financial operations, and enhance institutional acceptance and public trust in the crypto market.



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