Here’s today’s hot topic for anyone worried about their crypto balances:

SEC Rescinds SAB 121

• What changed: Exchanges no longer must record every customer balance as a liability on their own books.

• Why it matters: Firms get more breathing room on capital and reporting—but your assets still need strong safeguards.

Safeguarding Your Balance

• Proof-of-reserves: Watch for platforms that regularly publish on-chain snapshots showing they actually hold your coins.

• Third-party audits: Look for external accountants or trust companies reviewing an exchange’s custodied assets.

• Insurance & bonding: Some firms carry policies to cover losses from hacks or mismanagement—check the fine print.

New Custody Rules on the Way

• The SEC and state regulators are drafting broader “custody” requirements under existing securities and trust laws.

• You’ll see more disclosures on how your keys are stored, who holds them, and what happens if something goes wrong.

What You Can Do Right Now$SOL

• Pick a transparent exchange: Favor platforms with real-time or periodic proof-of-reserve reports.

• Diversify your custody: For large balances, consider splitting between an exchange account (for trading) and a personal hardware wallet (for long-term HODL).

• Stay informed: Subscribe to your exchange’s legal updates and audit releases so you know exactly how—and where—your crypto is held.

Bottom line: The removal of SAB 121 lightens a load for exchanges, but shifts more responsibility onto you. Always verify reserves, audits and insurance before trusting an exchange with your balance.😅$SOL