Regulation · Instrument · United States · Guidance · U.S. Securities and Exchange Commission

SEC Staff Accounting Bulletin No. 122 (rescission of SAB 121)

Withdraws SAB 121, which had required firms safeguarding crypto-assets for platform users to book a liability and matching asset on balance sheet, a treatment that made crypto custody capital-intensive for banks. Firms now assess whether to recognise a liability for risk of loss under ordinary loss-contingency accounting (ASC 450-20 or IAS 37), applied retrospectively for annual periods beginning after 15 December 2024, with continued disclosure.

In force · effective 30 Jan 2025 · part of SEC framework for tokenised securities and crypto assets (federal securities laws, staff statements and exemptive relief)