The SEC’s SAB 122 rescinds a contentious staff accounting bulletin that required crypto custodians to record a safeguarding obligation.
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- On Jan. 23, 2025, the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin (SAB) No. 122, which rescinds the staff’s previous SAB No. 121 that had required an entity to record a liability when it had an obligation to safeguard third-party crypto assets.
- The recission of SAB No. 121 takes effect in annual reporting periods beginning after Dec. 15, 2024, but an entity may also elect to rescind SAB No. 121 in an earlier interim or annual financial statement period that is included in filings with the SEC after the effective date of SAB No. 122 (Jan. 30, 2025).