Hester Peirce, Chairman of the BD’s new crypto task force, announced that the SAB 121 regulation will be removed. This news arouses a great impact in the crypto world. What is Sab 121? Why is it important for the crypto currency market? Let’s answer…
What is Sab 121?
Staff Accounting Bulletin or SAB is the guide of the SEC’s explanation for the Federal Securities Laws. It is also a guide that expresses its policies. Sab 121 was published in March 2022 and especially included the following statement. An organization should show the crypto assets that are stored on behalf of platform users as an obligation in the balance sheet.
This regulation made it difficult for financial players such as banks and financial institutions to provide services for cryptos. Howard Lutnick said Cantor Fitzgerald’s CEO, in a video sharing, in his statements that banks have to separate an equal amount of money if a customer hides Bitcoin’s Bitcoin. He stated that this has put a great pressure on financial institutions and limited the scalability of crypto products.
Importance of the removal of SAB 121
The abolition of SAB 121 will accelerate the integration of digital assets into the traditional financial system. In an article in which Vaneck research managers announced the 2025 crypto predictions, it was stated that this change would make it possible for banks and brokers to keep crypto assets more easily. This step allows especially Spot crypto storage services. Thus, it eliminates many limitations in the sector.
Benchmark Analyst Mark Palmer said that this change would have a greater effect on the establishment of a strategic Bitcoin reserve on Bitcoin and general crypto ecosystem. Since brand new doors will be opened for crypto ecosystem, the removal of SAB 121 may have very important results in the long run.
Return to the past and veto
Sab 121 was first published in 2022. The Congress then submitted a draft law to cancel this regulation. The draft was presented to the approval of US President Joe Biden. But Biden vetoed this bill. Wee Ming Choon, the chief law consultant of Ava Labs, said in an interview last month that the abolition of SAB 121 would be a quick and well -intentioned step for a new administration. The new arrangement approach, led by Hester Peirce, seems to have justified this view.
What’s next?
With the termination of SAB 121, the crypto world is preparing to enter a new transformation process. Banks and traditional financial institutions are able to work more integrated with digital assets. However, it is early to see what innovations these changes will lead to the crypto ecosystem. We’ll have to wait a little longer for this.
