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📌 The post SEC repeals SAB 121: banks are free to hold digital assets appeared first on Atlas21.

SEC repeals SAB 121: banks are now free to hold digital assets SAB 121 was a rule introduced by former SEC Chairman Gary Gensler that required companies holding cryptocurrencies (such as banks and exchanges) to report those assets as liabilities on their balance sheets. Cryptocurrency

– SEC repeals SAB 121: banks are now free to hold digital assets SAB 121 was a rule introduced by former SEC Chairman Gary Gensler that required companies holding cryptocurrencies (such as banks and exchanges) to report those assets as “liabilities” on their balance sheets.

The rule required them to do so. For example, if a bank managed $1 million worth of bitcoins for its customers, it had to have $1 million in cash reserves. This requirement made it prohibitively expensive and difficult for traditional banks to enter the digital asset market;

SAB 122 removes these restrictions and brings cryptocurrency accounting in line with traditional standards such as FASB ASC 450-20 (US GAAP) and IAS 37 (IFRS). It brings it in line with them. Key updates include: balance sheet flexibility: companies will now measure liabilities to take into account potential declines in asset prices. Retrospective effect: the amendments will apply to financial statements beginning on December 15, 2024, but early application will also be permitted. Opportunities for banks: financial institutions, including major US banks, can now offer cryptocurrency custody services without capital controls.

Bitcoin

Bitcoin

$98,141.02

BTC 0.78%

Ethereum

Ethereum

$2,706.90

ETH 2.55%

Binance Coin

Binance Coin

$642.86

BNB 6.09%

XRP

XRP

$2.49

XRP 3.37%

Dogecoin

Dogecoin

$0.26

DOGE 6.19%

Cardano

Cardano

$0.81

ADA 16.47%

Solana

Solana

$203.23

SOL 0.17%