Shift

Cryptocurrency

<p>You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/secs-shift-opens-new-doors-for-cryptocurrency-services/" rel="noopener noreferrer nofollow">SEC’s Shift Opens New Doors for Cryptocurrency Services</a><br></p><p>Under the Biden administration, the <a href="https://en.coin-turk.com/experts-predict-bitcoin-price-recovery/" rel="noopener noreferrer nofollow">SEC</a> and other regulatory bodies have advanced a negative stance towards cryptocurrencies, supported by centralized governance. This has led to numerous adverse news reports concerning cryptocurrencies from the US over the years. However, the current situation indicates a notable reversal.</p><h2 id="sab-121-and-its-impacts">SAB 121 and Its Impacts</h2><p>Led by Gensler, the SEC has taken specific steps to undermine <a href="https://en.coin-turk.com/bitcoin-price-approaches-a-breakout/" rel="noopener noreferrer nofollow">cryptocurrency</a> operations. One of the most troubling moves has been the introduction of SAB 121. This controversial accounting guideline, known as the SEC’s Staff Accounting Bulletin 121, was announced by Hester in the first week of Trump’s presidency and has since been rescinded.</p><p><img class="size-full wp-image-430031 aligncenter" src="https://coin-turk.com/wp-content/uploads/2025/01/SEC-SAB121.png" alt="" width="1046" height="361"></p><p>When this rule was first introduced, traditional accountants were taken aback by SAB 121, with a prominent figure stating that it created an entirely new accounting standard for digital assets, which was beyond the SEC’s authority. Jim Kroeker, the former vice president of the Financial Accounting Standards Board and chief accountant at the SEC, commented: “The SEC staff previously attempted to claim that SAB 121 was consistent with the existing GAAP standards, which is not accurate. This created a new and unique accounting model for <a href="https://en.coin-turk.com/world-liberty-financial-makes-waves-with-109-million-crypto-investment/" rel="noopener noreferrer nofollow">crypto</a> custody regulations without going through the necessary process for GAAP formulation.”</p><p>Generally Accepted Accounting Principles (GAAP) are standardized accounting rules set by the FASB that all public companies in the US must follow. They are crucial for ensuring consistency and transparency in the financial reporting of banks and other financial institutions.</p><h2 id="what-has-changed">What Has Changed?</h2><p>Following the repeal of SAB 121, an SEC spokesperson indicated that companies providing crypto custody services would no longer be penalized. Major banks can now offer services related to cryptocurrencies. For instance, JPM previously resisted opening bank accounts for crypto companies but can now store its clients’ or its own cryptocurrencies corporately.</p><p>Of course, institutions like the Fed, FDIC, and OCC also need to encourage banks in this regard. On March 6, these three institutions will meet to review regulations, potentially unveiling further steps related to cryptocurrencies.</p><p>The post <a href="https://en.coin-turk.com/secs-shift-opens-new-doors-for-cryptocurrency-services/" rel="noopener noreferrer nofollow">SEC’s Shift Opens New Doors for Cryptocurrency Services</a> appeared first on <a href="https://en.coin-turk.com" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

SEC’s Shift Opens New Doors for Cryptocurrency Services

Table of Contents

COINTURK NEWS

Other articles published on Jan 31, 2025

Weekly Article Recap: 1/20-1/24

Grayscale Launches Dogecoin Trust to Expand Financial Access

Circle Mints Another 250M $USDC Through Solana to Fulfill Increasing Demand

Lido Primer

Crypto Analyst Predicts XRP Price Surge To $6.4 As The Coin Rallies Again While FXGuys ($FXG) Is ...

Apple records an all-time high revenue of $124.3 billion for quarter ending Dec 2024

Join our free newsletter for daily crypto updates!