The repeal of the SEC's Staff Accounting Bulletin (SAB) 121 has been praised by the U.S. crypto and banking industries, as it eliminates a major regulatory obstacle for traditional banks to offer crypto custody services. Critics argue that SAB 121 was an attempt by SEC Chairman Gary Gensler to prevent traditional banks from entering the crypto business as part of the Biden Administration's wider regulatory crackdown on digital assets. Traditional accountants have also objected to the rule, stating that it creates a new accounting standard for digital assets without going through the usual process. The repeal of SAB 121 is seen as a positive change, but banking executives are still cautious and seeking guidance from primary regulators to determine their involvement in the crypto sector.



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