SEC Withdraws Controversial Crypto Tax Accounting Bulletin

The crypto world is buzzing with news that the U.S. Securities and Exchange Commission (SEC) has withdrawn its controversial Staff Accounting Bulletin (SAB) No. 121. This move, outlined in SAB No. 122, signals a significant shift in the regulatory landscape for crypto assets, particularly in terms of accounting practices and disclosures. Let's dive into the details and explore the implications of this change.



The rescission of SAB 121 means that crypto custodial services are no longer required to record a liability and a corresponding asset for crypto assets held on behalf of users. Instead, they can now evaluate their obligations to safeguard crypto-assets using broader accounting standards, such as U.S. GAAP contingency rules and IFRS guidelines (SEC, 2025). This change simplifies accounting practices, creates a more level playing field, and may impact balance sheets and disclosure requirements.