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The U.S. Securities and Exchange Commission has reversed a pivotal regulation that previously mandated banks to classify cryptocurrencies held on behalf of clients as liabilities. This shift comes under the guidance of the new SEC leadership appointed by President Trump who aims to foster a more crypto-friendly regulatory environment. The former rule, Staff Accounting Bulletin 121, was rescinded just after the formation of a new task force focused on informing future crypto regulations.
Under the prior framework implemented during President Biden’s term financial entities faced significant restrictions. These conditions stifled the ability of banks to engage freely with digital assets. By overturning this guideline, which Congress had already attempted to eliminate before being thwarted by a presidential veto, the SEC under Acting Chair Mark Uyeda marks a significant policy shift.
The decision aligns with Trump’s pro-crypto stance and follows his executive order to establish a national digital assets reserve. With regulations easing the banking sector spearheaded by leaders like Bank of America CEO Brian Moynihan expresses readiness to aggressively support crypto transactions underscoring a potentially transformative period for the industry.
