Coming soon: On everyone's lips. SAB 121

SAB 121 (Staff Accounting Bulletin No. 121), issued by the SEC in 2022, regulates the accounting and disclosure requirements for companies that store cryptocurrencies on behalf of their clients.

According to this document:

1. Accounting

Companies are required to account for clients' cryptocurrencies as an asset and simultaneously recognize liabilities in an equal amount, which increases their balance sheet and potentially increases reporting risks.

2. Risk Disclosure

Companies must provide information about the risks associated with storing cryptocurrency, including security issues and potential losses.

⚠️ Impact on cryptocurrency

▪️Increases transparency and investor confidence.

▪️Increases regulatory pressure on cryptocurrency exchanges and custodial services.

▪️May increase compliance costs.

🚫 The repeal of Staff Accounting Bulletin 121 (SAB 121), a controversial rule introduced by the SEC, could be a powerful driver for institutional adoption of $BTC . SAB 121 requires banks to account for digital assets as liabilities, increasing regulatory risks and curbing interest in cryptocurrencies.