SEC: Wall Street Banks May Soon Hold Crypto

It gets easier to hold crypto, and crypto is shaking up Wall Street again—this time, it’s good news for investors. The U.S. SEC recently scrapped a controversial rule, SAB 121, and replaced it with the more flexible SAB 122. Read on to get the details.

Understanding these changes impacts how you hold crypto. These new regulations will enable banks to store crypto while extending their services to client interactions.

A Shift in Crypto Regulation

The old SAB 121 required banks and companies to list customer crypto holdings on their financial statements. Insurers and firms handling digital assets faced additional regulatory risks under the original framework structure. The Securities and Exchange Commission clarifies regulatory guidance in SAB 122 , which helps their simplified approach to regulating financial activities.

The Financial Accounting Standards Board (FASB) and  international accounting guidelines allow firms to regulate customer crypto holdings rather than enforcing mandatory declaration processes.

🇺🇸 SEC SCRAPS SAB 121, LUMMIS AND PEIRCE CELEBRATE REPEAL

SAB 121, criticized for hindering banking and digital asset innovation, has been repealed. @SenLummis called the rule disastrous, stifling American progress in digital assets.

SEC Commissioner Hester Peirce welcomed… pic.twitter.com/UJGTMS5Stf

— Mario Nawfal (@MarioNawfal) January 24, 2025

Banks must still disclose any risks to safeguarding customer crypto, but the changes remove unnecessary barriers. Banks may soon feel more comfortable venturing into crypto , which would be a win for anyone hoping to see financial institutions embrace digital assets.

What’s in It for Crypto Investors?

This rule change could be a big deal for cryptocurrency investors. It makes it easier for Wall Street banks to hold crypto and offer it to their clients. More banks in the crypto game means greater adoption, which could lead to higher prices across the market.

President Donald Trump recently signed an executive order to create a “digital asset stockpile.” His support for the industry is already sparking optimism, with many anticipating friendlier regulations under his leadership. If this momentum continues, we could see a more crypto-centric environment and an extended bull run.

SEC’s SAB 122 enables banks to securely manage crypto assets

The U.S. Securities and Exchange Commission (SEC) has issued SAB 122—a new guidance replacing the controversial SAB 121 rule.

This transition aims to make it easier for banks and other financial institutions to… pic.twitter.com/yx1hC1QQfW

— CryptoTvplus (@Cryptotvplus) January 27, 2025

What’s Next for the Crypto Market?

Combining the SEC’s rule change and Trump’s pro-crypto stance is building excitement. If Wall Street banks begin to hold crypto and increase their offerings, the market could experience significant growth. Investors are watching as these moves signal a broader acceptance of digital assets in the U.S.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.