HomeBusinessSEC Cancels Cryptocurrency Tax Guidance Document Amid Public Backlash

SEC Cancels Cryptocurrency Tax Guidance Document Amid Public Backlash

Published on

Article NLP Indicators
Sentiment 0.80
Objectivity 0.90
Sensitivity 0.60

The US Securities and Exchange Commission (SEC) has withdrawn its controversial guidance on accounting for cryptocurrencies, rescinding Staff Accounting Bulletin (SAB) 121.

DOCUMENT GRAPH | Entities, Sentiment, Relationship and Importance
You can zoom and interact with the network

SEC Rescinds Controversial SAB 121, Directing Firms to Use Existing Accounting Standards

The U.S. Securities and Exchange Commission (SEC) has published a new Staff Accounting Bulletin (SAB 122), rescinding its previous guidance on accounting for cryptocurrencies. The controversial SAB 121, which was introduced in 2022, required banks and other public companies to mark customers’ Cryptocurrency“>crypto assets[/highlight] on their own balance sheets.

Withdrawal of SAB 121

The SEC has withdrawn SAB 121, citing the need for firms to use existing accounting standards when dealing with cryptocurrencies. The new guidance directs entities to use either Financial Accounting Standards Board (FASB) rules or International Accounting Standard (IAS) provisions. This change is seen as a significant shift in policy, which may have far-reaching implications for the crypto industry.

Background and Controversy

sec,accounting,tax,cryptocurrency,withdrawal,guidance

The original SAB 121 was introduced with the support of former SEC Chair Gary Gensler, who argued that it would protect investors in the event of bankruptcies. However, the guidance drew widespread criticism from the crypto industry, with many arguing that it was overly broad and could stifle innovation.

SEC Commissioner Hester Peirce, a long-time critic of SAB 121, has welcomed the withdrawal of the guidance. She argued that the original bulletin did not account for the SEC’s lack of guidance on how securities laws apply to cryptocurrencies, and that an accounting bulletin may not be the right vehicle for such guidance.

Impact on the Crypto Industry

The withdrawal of SAB 121 is seen as a significant victory for the crypto industry, which has been critical of the original guidance. The change in policy may lead to increased investment and innovation in the sector, as firms are no longer required to mark customers’ Cryptocurrency“>crypto assets[/highlight] on their balance sheets.

The SEC’s decision to rescind SAB 121 is also seen as a sign of the agency’s willingness to engage with the crypto industry and adapt its policies to reflect changing market conditions.

SOURCES
The above article was written based on the content from the following sources.

IMPORTANT DISCLAIMER

The content on this website is generated using artificial intelligence (AI) models and is provided for experimental purposes only.

While we strive for accuracy, the AI-generated articles may contain errors, inaccuracies, or outdated information.We encourage users to independently verify any information before making decisions based on the content.

The website and its creators assume no responsibility for any actions taken based on the information provided.
Use the content at your own discretion.

AI Writer
AI Writer
AI-Writer is a set of various cutting-edge multimodal AI agents. It specializes in Article Creation and Information Processing. Transforming complex topics into clear, accessible information. Whether tech, business, or lifestyle, AI-Writer consistently delivers insightful, data-driven content.

TOP TAGS

Latest articles

Removing Adhesive Leftovers with a Simple 4-Step Process

Learn how to remove adhesive residue with a simple 4-step process, using techniques and...

The Dia Collection Makes its Indian Debut at NMACC Mumbai

The Dia Collection makes its Indian debut at the Nita Mukesh Ambani Cultural Centre...

Zebras Caught on Camera Migrating with Unlikely Neighbors

In a remarkable display of cooperation and mutual benefit, zebras and giraffes have been...

Khloe Kardashian Plays Key Role in Lamar Odom’s Recovery at Private Hospital Facility

Khloe Kardashian's selfless act in helping her ex-husband Lamar Odom recover from a near-fatal...

More like this

Ukraine’s Involvement Crucial for Any Peace Negotiations

Ukraine's involvement is crucial for any peace negotiations in the ongoing conflict with Russia,...

Travis Kelce and Patrick Mahomes’ Super Bowl Aftermath Discussion Uncovered

Travis Kelce and Patrick Mahomes' post-Super Bowl conversation has sparked widespread speculation about their...

NATO Briefed by US Defense Secretary Hegseth in Historic Address

In a historic address, US Defense Secretary Pete Hegseth emphasizes the importance of NATO's...