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January 23, 2025Law & sovereign policyRegulatory guidancedocumented

SEC staff rescinds SAB 121

Staff Accounting Bulletin 122 removed the SEC staff guidance that had required certain crypto custodians to record safeguarding assets and liabilities at gross fair value.

After rescission, companies assess loss-contingency accounting under existing U.S. GAAP or IFRS requirements and continue relevant disclosures. SAB 122 became effective January 30 and permitted retrospective application.