The US Securities and Exchange Commission (SEC) has repealed a controversial accounting rule known as Staff Accounting Bulletin No. 121 (SAB 121), which discouraged banks from dealing in cryptocurrencies. The rule required banks to record cryptocurrencies as liabilities on their balance sheets, making it financially impractical for many banks to offer custody services. The repeal is expected to pave the way for traditional financial institutions to participate more freely in the crypto sector. It could also lead to a clearer division of roles between trading and custodial providers in the crypto industry. Experts predict that the repeal could also impact the approval of new crypto-related exchange-traded funds (ETFs), although the SEC may still impose limits on certain practices.



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