SEC Staff Repeals Crypto-Accounting Guidance Reviled by Industry

US Securities and Exchange Commission staff repealed accounting guidance the crypto industry has said squashed its ability to work with banks.

“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,” according to the repeal notice issued Thursday.

Released in 2022, Staff Accounting Bulletin No. 121 called on businesses to account for customers’ crypto assets as their own by listing them on their balance sheets.

It was billed as a way to let investors learn about the unique risks of ...