SEC Rescinds Accounting Rule
The SEC rescinded a pending crypto accounting rule and withdrew guidance that previously limited broker-dealers from holding digital assets, effectively clearing regulatory hurdles for custody and money-transmission businesses. The move was paired with the agency terminating most pending enforcement actions related to that rule — a notable shift in enforcement posture.
Staff Accounting Bulletin No. 122 was published in the Federal Register with an effective date of Jan. 30, 2025 federalregister.gov and the SEC directed entities to apply the change on a fully retrospective basis for annual periods beginning after Dec. 15, 2024. kpmg.com The staffs of the SEC’s Division of Trading and Markets and FINRA withdrew the July 8, 2019 joint-staff statement on broker‑dealer custody on May 15, 2025 sec.gov and published a set of FAQs that address Rule 15c3-3 financial-responsibility and transfer-agent issues for broker‑dealers and transfer agents. jdsupra.com The Commission filed a joint stipulation to dismiss the civil enforcement action against Coinbase on Feb. 27, 2025 sec.gov and subsequently filed joint stipulations dismissing cases against Kraken, ConsenSys, and Cumberland DRW in late March 2025. decrypt.co The SEC opened 13 crypto-related enforcement actions in calendar year 2025 versus 33 in 2024, a roughly 60% decline. cornerstone.com Major custodian banks moved at speed: U.S. Bank announced the resumption of bitcoin custody services on Sept. 3, 2025 as an early-access program for institutional clients ir.usbank.com, Citi has deployed its CIDAP digital‑assets platform and told outlets it aims to launch custody services in 2026 citigroup.com, and reports in early 2025 flagged State Street preparing crypto‑custody capabilities. blockhead.co The American Bankers Association publicly applauded the SEC staff action in a Jan. 24, 2025 statement. aba.com
