The US Securities and Exchange Commission (SEC) last night repealed SAB 121, which restricted banks from accessing bitcoin (BTC) and cryptocurrencies. This is a move that the financial industry had expected to happen sometime after Donald Trump takes office.

SAB 121 was an accounting bulletin imposed by the SEC three years ago, in March 2022. It required financial institutions that held users' crypto assets to protect this capital as liabilities, regardless of whether there were real financial risks.

Various companies have stayed away from operating bitcoin and cryptocurrencies due to this regulation. That is why its elimination opens the door for entities from the main economic power to want to enter this industry and increase potential exposure to the market.

The SEC announced that it is “rescinding interpretive guidance” from SAB 121 with the filing of SAB 122. This new rule provides financial institutions with the ability to determine any liability related to safeguarding risks under broader accounting rules.

“Goodbye, SAB 121!” said Hester Peirce, SEC commissioner and leader of the agency’s cryptocurrency working group. “It hasn’t been fun.”

“SAB 121 was disastrous for the banking industry and only held back American innovation and the advancement of digital assets. I am excited to see it repealed and the SEC back on track to fulfill its mission,” said Senator Cynthia Lummis, who minutes earlier was named chair of a new Senate committee dedicated to digital assets.

Michael Saylor, founder of MicroStrategy, the software services company famous for investing its reserves in bitcoin, applauded this initiative. “The repeal of SAB 121 allows banks to hold bitcoin,” he said.

This cancellation may be bullish for the price of BTC

This regulation “was the only thing stopping banks from offering bitcoin custody services,” commented BTC financial services platform Swan. “No one is bullish enough,” it said of the news.

“Bring on the big banks!” Fred Thiel, CEO of the giant bitcoin mining company MARA Holdings, exclaimed in response to the initiative.

Likewise, from the large mining company Core Scientific, board member Eric Weiss showed his enthusiasm, pointing out that this is a mega important event. “This will be a huge-huge catalyst for a long-term appreciation of the price of bitcoin,” he said.

According to Weiss, this repeal is the biggest catalyst for the appreciation of cryptocurrency and bitcoin prices. “The ability for banks to hold cryptocurrencies means that you will be able to take out loans with your crypto as collateral. To put that into perspective, what would the price of real estate be if there were no mortgages, and you had to pay cash?” he said.

Bitcoin enthusiast NBA champion Scottie Pippen echoed the move as a “huge win for cryptocurrencies.” “This is a game-changer for the adoption and future of finance,” he said. “The revolution is here!”

The SEC's reversal of this policy came amid a wave of executive orders issued yesterday by Donald Trump related to crypto assets. Among them, the inclusion of bitcoin in the United States reserves stands out, as promised by the president during his campaign.  

As analyst James Van Straten said days ago, “repealing SAB 121 is a bigger deal than a strategic bitcoin reserve in the short term.” He attributes this to the fact that this change allows banks to use digital assets as collateral, integrating them into financial products and lending systems. “The winds of impact are endless,” he warned.

However, there are those who have expressed dissatisfaction with this policy. Among them is Jacob King, a financial analyst and founder of the research firm WhaleWire. “Do you see the hypocrisy in all this?” he asked. “The goal of Satoshi Nakamoto, the creator of bitcoin, was not to have a third party to take custody of it,” he stressed.

“In 2025, the entire Bitcoin community is on its knees before the bankers and begging them to keep it for themselves,” the specialist continues. “The fact is that the true purpose of Bitcoin was completely lost years ago due to the irrational collective greed and delusion that has infected its cult,” he says. In his opinion, this will not end well.

With this in mind, while this decision may bring bitcoin to more people and generate a bullish impact on its price, there is concern about the lack of awareness about self-custody. Although, something to consider is that if large banks offer these assets it could favor trading and their users could then move their holdings to their own wallets.

Meanwhile, Bitcoin remains trading around USD 105,000, after reaching, a new all-time high above USD 109,000 last Monday when Trump assumed the presidency of the United States.