SAB 121, a controversial rule that required companies engaging in crypto custody to include digital assets as a liability on their balance sheet, has been rescinded by the SEC's new accounting bulletin. This move allows banks to now custody Bitcoin without facing potential impacts on their leverage ratios. Cryptocurrency proponents and industry experts have hailed this rescindment, highlighting the economic unviability the rule posed for safeguarding crypto for major players.

During the World Economic Forum in Davos, Switzerland, bank executives expressed excitement about the new regulatory clarity. Michael Saylor, the executive chairman of MicroStrategy, reported that banks are now permitted to custody Bitcoin following the rule's rescission, marking a significant shift in the financial landscape.

The rescindment of SAB 121 has been viewed as a positive development by those in the cryptocurrency industry, as it removes a significant barrier that previously barred banks from entering the market. Industry figures like Teddy Fusaro and Jake Chervinsky have weighed in on the implications of this regulatory change, emphasizing the ease with which such rules can be overturned by the new administration.

According to Anthony Scaramucci of SkyBridge Capital, bank executives are already expressing excitement about the newfound regulatory clarity, signaling a potential shift in the market's perception of cryptocurrency's role within the financial system. This development marks a key moment in the evolving relationship between traditional banking institutions and the burgeoning world of cryptocurrency.