The U.S. Securities and Exchange Commission (SEC) on Thursday repealed accounting guidance that had long been a point of contention within the cryptocurrency industry. This move by President Donald Trump marks a departure from the previous administration's policies and represents a significant victory for the digital asset sector.
In 2022, the SEC issued guidance known as “Accounting Bulletin 121.” Initially implemented during President Joe Biden's tenure, this guidance set rules for companies that manage digital assets on behalf of their clients.
1. Requiring companies to account for digital assets held for clients as liabilities.
2. Increasing the costs associated with bookkeeping and providing such services.
Cryptocurrency industry representatives and lawmakers supportive of digital currencies have long opposed this measure. Their primary criticism was that the requirement to account for digital assets as liabilities artificially inflated the cost of services provided by cryptocurrency companies. This, in turn, complicated many business processes and created additional financial barriers.
- Increased administrative expenses for cryptocurrency companies.
- Difficulties in managing assets and liabilities.
- Negative impact on the cost and accessibility of cryptocurrency services for clients.
The repeal of this accounting guidance is the first step by the Trump administration to move away from the policies of the previous Biden administration. This action has received positive feedback within cryptocurrency circles and is seen as a major step towards fostering innovation and the development of digital assets.
The repeal of this guidance marks a pivotal win for the crypto industry!
This is definitely a positive signal for the market. Expecting a rise
Finally! We’ve been waiting for this decision from the regulators
