SEC Rescinds Controversial SAB 121 on Crypto Tax Accounting

SEC Withdraws Controversial Crypto Tax Accounting Bulletin

The U.S. Securities and Exchange Commission published a new Staff Accounting Bulletin Thursday withdrawing its controversial SAB 121. SAB 121 directed banks and other public companies that they had to mark any customers’ crypto assets on their own balance sheets.

SAB 122 “rescinds the interpretive guidance” and instead directs firms to use Financial Accounting Standards Board rules or International Accounting Standard provisions.

“The staff reminds entities that they should continue to consider existing requirements to provide disclosures that allow investors to understand an entity’s obligation to safeguard crypto-assets held for others,” Thursday’s notice said.

The guidance it rescinds, SAB 121, was supported by former SEC Chair Gary Gensler, who said it would protect investors in the event of bankruptcies.

Trump signs executive order on crypto, digital asset stockpile

President Donald Trump signed an executive order on Thursday to promote the advancement of cryptocurrencies in the U.S. and to work toward potentially developing a national digital asset stockpile.

Venture capitalist David Sacks, who Trump tapped as his crypto and artificial intelligence czar, joined Trump in the Oval Office for the signing of the order.

“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the order states.[…]

Most of the order focuses on establishing technology and rules around crypto and its development in the U.S. One of the critical pieces is the creation of a working group to consider a national digital asset stockpile, “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort.” Source:

Crypto Critic Elizabeth Warren Probes Trump’s Meme Coin Venture ($TRUMP)

Senator Elizabeth Warren is calling foul on President Donald Trump’s meme coin, pressing for the U.S. Office of Government Ethics and financial regulatory agencies to dig into the ethical and regulatory details around the $TRUMP token.

Warren, who is the top Democrat on the Senate Banking Committee that oversees U.S. financial regulators, says the assets, including First Lady Melania Trump’s own eponymous meme coin, pose conflict-of-interest hazards for the president and highlight the most destructive and volatile corner of the crypto sector.[…]

The letter was sent to the Treasury Department, Securities and Exchange Commission and the Commodity Futures Trading Commission — each of which now has a new Trump pick at the helm. Warren and Auchincloss raised the point that Trump is in charge of appointing the permanent heads of these regulatory agencies that will make decisions affecting the future of his crypto tokens.