President Trump Eliminates SAB 121, Allowing Banks To Custody Bitcoin and Crypto Assets

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Daily Hodl2025/01/22 16:00

By:by Daily Hodl Staff

President Trump has officially eliminated a controversial guideline from the U.S. Securities and Exchange Commission that effectively prevented US banks from holding crypto assets.

The administration’s new leadership at the SEC just rescinded Staff Accounting Bulletin 121, which forced banks to identify crypto assets held on behalf of their customers as liabilities on their balance sheets.

A bill aiming to eliminate the guideline passed both the House and the Senate last year, but President Biden vetoed the bill.

Although the issue is a top priority among crypto proponents, the removal of the rule was not a campaign promise.

Bank of America CEO Brian Moynihan recently said American banks are ready to jump at the chance to custody crypto assets.

“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.”

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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