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US SEC Rescinds Crypto Accounting Rule SAB 121 After Gensler’s Exit

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The US Securities and Exchange Commission (SEC) has removed the much-debated and unpopular crypto accounting guidance Staff Accounting Bulletin No. 121 (SAB 121) only a few days after the exit of the SEC chair Gary Gensler.

US SEC Withdraws Controversial SAB 121

The U.S. SEC has posted a notice on its website that SAB 121 that was released in 2022 was withdrawn with the release of Staff Accounting Bulletin No. 122. SAB 121 stated that companies that have custody of cryptocurrencies for their clients must recognize these crypto-assets as liabilities in their financial statements.

The guidance had come under much criticism from the crypto industry and lawmakers, stating that the rule raised compliance costs and deterred banks from offering digital asset custody services. Meanwhile, the SEC noted that instead of following the guidance provided in the statement, entities should continue to use the Financial Accounting Standards Board (FASB) or International Accounting Standards (IAS) to account for the crypto assets.

Hester Peirce, a SEC commissioner and now the head of the agency’s recently created crypto unit, expressed support for the move. “Bye, bye SAB 121! It’s not been fun,” Peirce shared on X (previously Twitter) on Thursday. She had earlier described it as a rather rigid policy that is disadvantageous to the growth of innovation.

Criticism and Legal Challenges Surrounding SAB 121

Since its introduction, SAB 121 has been criticized by the crypto industry and members of both parties in Congress. Critics had complained that the rule was introduced in the absence of a proper public consultation process and that it was aimed at firms in the digital asset industry specifically. The banking industry also voiced out its concern, saying that the rule hampers their capacity to give out custodial services for the digital assets.

The US SEC’s former chairman Gary Gensler, who backed the rule, said it was needed to safeguard investors in case of bankruptcies. Gensler provided examples of bankruptcy courts claims that customer cryptocurrency was not shielded from creditors, and, therefore, the need to put more measures in place.

Nonetheless, in 2024, Congress tried to repeal SAB 121 through a bipartisan resolution by passing it in both the House and the Senate. However, the resolution was vetoed by then President Joe Biden. It remained effective up to the Thursday announcement in light of leadership switch at the SEC as well as beginning of a new administration under pro-crypto President Donald Trump who has affirmed his intention to make US a home for crypto.

Leadership Change Marks New Direction for the US SEC

Gary Gensler has stepped down as the US SEC Chair this week, and Mark Uyeda, the Republican Commissioner, has taken over as the acting chair. On Tuesday, Uyeda released members of the crypto task force led by Hester Peirce to tackle the crypto asset regulation.

“The SEC has primarily relied on enforcement actions to regulate crypto, which has created uncertainty,” the SEC said in a statement. “Clarity and practical solutions for those seeking compliance have been elusive.”

The task force wants to introduce a clearer and more predictable approach to regulating cryptocurrencies. This change has been made after a long time of criticism that Gensler has taken a reactive and punitive approach while at the SEC.

Industry and Lawmakers Welcome the Decision

The crypto industry and banking sector have hailed the withdrawal of SAB 121 as a move towards promoting innovation and decreasing the regulatory burden. 

Paige Pidano Paridon, co-head of the Bank Policy Institute’s regulatory affairs, said that the decision would allow the banks to regain their capacity for being the secure guardians of digital assets.

At the same time, the lawmakers who voted against SAB 121 also announced their support. Pro-crypto Republican Senator Cynthia Lummis, the new digital assets subcommittee chair from Wyoming called the rule “disastrous” and celebrated its removal. Mike Flood, the representative who proposed a resolution to repeal SAB 121 in 2024, characterized the withdrawal as a positive sign of bipartisan support and shift in US crypto policy.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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USDC Issuer Circle Set To File IPO In April, Here’s All

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USDC issuer Circle is reportedly set to file its initial public offering (IPO) in April as part of the firm’s plans to finally go public. The stablecoin issuer is allegedly already working with top financial institutions to achieve this move.

Circle To File IPO In Late April

According to a Fortune report, Circle is looking to file its IPO in late April, although the listing period remains uncertain. The report noted that when a company files to go public, its shares usually begin trading four weeks later, indicating that the listing could occur in May. However, there is also a scenario where the IPO process could drag on for months.

The stablecoin issuer is reportedly working with investment banks JPMorgan Chase and Citi to achieve its long-anticipated IPO. The firm had previously tried to go public in 2021 under a SPAC arrangement with a shell company.

The US SEC failed to sign off on this arrangement back then, and the company eventually scrapped these IPO plans by the end of 2022 when the crypto exchange FTX collapsed and the broader crypto market experienced a downturn.

Revelation about Circle’s IPO plans comes just days after the stablecoin issuer partnered with NYSE’s parent company to explore USDC’s use in traditional finance (TradFi). Meanwhile, the USDC stablecoin recently launched in Japan following approval from the country’s regulator. Notably, USDC is the first and only global dollar stablecoin approved under Japan’s stablecoin framework.

An Easier Path Now For The Stablecoin Issuer

Circle will likely face less resistance for its IPO plans under the current SEC administration. Under acting Chair Mark Uyeda, the Commission has shown its willingness to work hand in hand with crypto firms, which was missing under Gary Gensler’s administration.

US SEC Chair nominee Paul Atkins has also shown his willingness to change the approach that Gensler’s administration adopted towards crypto firms. During his nomination hearing, the SEC Chair nominee promised to prioritize providing regulatory clarity for the industry.

Circle’s IPO listing would be the biggest since the top crypto exchange Coinbase went public in 2021. Interestingly, Coinbase owns an equity stake in the crypto firm.

The firm’s USDC is currently the second-largest stablecoin by market cap, only behind Tether’s USDT. The stablecoin industry is heating up as more financial institutions look to develop their own stablecoin.

Donald Trump’s World Liberty Financial recently revealed plans to launch its USD1 stablecoin, while asset manager Fidelity is also considering doing so.

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Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Japan Set To Classify Cryptocurrencies As Financial Products, Here’s All

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Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.

Japan Targets Reclassification Of Cryptocurrencies As Financial Products

According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.

Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.

The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.

The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.

Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.

A Fresh Bill For Crypto Insider Trading Is Underway

Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.

“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”

However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.

Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections

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In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.

Bitcoin Rights Bill Comes Into Effect

Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.

In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.

The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.

On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.

Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.

Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.

Renewed Optimism Under Trump Administration

Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.

Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.

The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.

bitcoin
BTC trades at $87,399 on the daily chart | Source: BTCUSDT on TradingView.com

Featured Image from Unsplash.com, chart from TradingView.com

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