Clifford Chance

SEC rescinds 2022 accounting guidance regarding crypto-assets under custody and issues new guidance

January 29, 2025

On January 23, 2025, the SEC issued Staff Accounting Bulletin (SAB) 122 to rescind previously imposed accounting guidance for crypto-assets under custody (SAB 121). By removing non-technology-neutral barriers to safekeeping digital assets, SAB 122 is widely expected to increase the provision of custody services for digital assets by banks, trust companies and other traditional custodians as well as accelerate the tokenization of traditional financial instruments and the use of digital ledger technology in traditional financial markets. Unlike SAB 121, which created uncertainty and paralysis, if it achieves its anticipated effects, SAB 122 should contribute to the increasing maturation and institutionalization of digital asset markets in the United States.

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