The U.S. Securities and Exchange Commission (SEC) announced the repeal of the SAB 121 rule, which required financial companies to account for clients' cryptocurrency assets as liabilities on balance sheets. This rule, adopted in March 2022, caused a wave of criticism from the crypto industry for complicating operations with digital assets.

The SEC confirmed the cancellation decision in a new bulletin issued on January 23. SEC Commissioner Hester Pierce, known for her support of the crypto industry, welcomed the repeal of SAB 121, saying it would help remove unnecessary barriers for cryptocurrency companies.

Congressional representatives, including Senator Cynthia Lummis, also praised the decision, calling SAB 121 "an obstacle to innovation." Now companies will be able to manage clients' crypto assets more freely without additional pressure from regulators.