Bye Bye, SAB 121!

The SEC officially scrapped the very controversial Staff Accounting Bulletin (SAB) 121.

Author

Danielle du Toit
January 24, 2025

Here's what we've got for you today:

  • US Lawmakers Applaud SEC Decision to Scrap SAB 121

  • Bitcoin Steady Near $140K After Bank of Japan Delivers Hawkish Rate Hike

  • SEC’s Crypto Actions Dropped by 30% in Gensler’s Final Year

  • Ross Ulbricht Receives $270K in Crypto Donations

The SEC officially cancelled its controversial SAB 121 rule that required firms holding cryptocurrency for customers to record assets as liabilities.

  • The SEC scrapped the controversial Staff Accounting Bulletin (SAB) 121, which required financial firms holding cryptocurrency for customers to classify the assets as liabilities on their balance sheets.

  • The crypto industry along with lawmakers criticized the rule for imposing unnecessary administrative burdens and inconsistent practices compared to traditional financial services.

  • SEC Commissioner Hester Peirce celebrated the repeal as a victory for the industry, and said in a post, “Bye, bye SAB 121! It’s not been fun.”

BTC held steady during Friday's Asian hours after Bank of Japan (BOJ) lifted the benchmark borrowing cost to the highest in 17 years.

  • The Bank of Japan also signaled continued interest rate hikes due to a positive wage outlook, which strengthened the Japanese yen by 0.6% to 155.12 against the US dollar.

  • Risk assets, including Bitcoin and S&P 500 futures, stayed resilient despite the rate decision and showed very little market stress.

  • The resilience in risk assets was likely due to the growing market focus on potential policy shifts under Donald Trump's presidency. This contrasts with the market's previous reactions to the Bank of Japan's July rate hike.

📉 SEC’s Crypto Actions Dropped 30% in Gensler’s Final Year

The US SEC launched 33 crypto-related lawsuits in 2024, down from 47 in 2023.

  • The SEC's crypto-related enforcement actions dropped by 30% in its last year under former Chair Gary Gensler, according to a Jan. 23 report by Cornerstone Research.

  • A total of 90 defendants or respondents were charged, including 57 people and 33 firms. This was accompanied by a 50% drop in administrative proceedings.

  • Despite fewer actions, monetary penalties reached a record $5 billion in 2024, which was mainly driven by the SEC's $4.5 billion settlement with Terraform Labs.

Supporters of the Silk Road darknet marketplace founder rallied to help him reintegrate into society after more than 11 years behind bars.

  • After his pardon by former President Donald Trump on Jan. 21, the Free Ross campaign raised more than $270,000 in crypto donations.

  • The campaign-operated Bitcoin wallet received more than $270,000 in BTC, including a huge $111,111 contribution from the crypto exchange Kraken.

  • Some other donations include $2,400 in Ethereum (ETH) and smaller contributions in Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Dogecoin (DOGE).

👀 QUICK NEWS

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