FROGFREN17 on Nostr: 💸 🏦 What happens if SAB 121 is repealed? SAB 121 requires companies, including ...
💸 🏦 What happens if SAB 121 is repealed?
SAB 121 requires companies, including banks, to treat custodied digital assets like Bitcoin as liabilities on their balance sheets, which increases the capital they must hold and discourages them from offering custody services. Repealing SAB 121 would remove this accounting burden, potentially allowing more banks and traditional financial institutions to offer Bitcoin custody services. This could lead to greater institutional adoption of Bitcoin, as these entities could more readily handle custody without the added financial strain.
SAB is the Staff Accounting Bulletin, a series of interpretive guidance issued by the SEC. And now Gary is gone. 😄
SAB 121 requires companies, including banks, to treat custodied digital assets like Bitcoin as liabilities on their balance sheets, which increases the capital they must hold and discourages them from offering custody services. Repealing SAB 121 would remove this accounting burden, potentially allowing more banks and traditional financial institutions to offer Bitcoin custody services. This could lead to greater institutional adoption of Bitcoin, as these entities could more readily handle custody without the added financial strain.
SAB is the Staff Accounting Bulletin, a series of interpretive guidance issued by the SEC. And now Gary is gone. 😄