SEC Publishes SAB 122 in Federal Register
January 31, 2025
The SEC has published Staff Accounting Bulletin (SAB) 122 in the Federal Register.
SAB 122 rescinds the guidance in SAB 121, under which an entity was required to
recognize a liability and corresponding asset for its obligation to safeguard crypto
assets for customers.
Full retrospective application of SAB 122 is required for annual periods
beginning after December 15, 2024, but entities are permitted to elect to apply the
rescission of SAB 121 in any interim or annual financial statement period included in
filings with the SEC after January 30, 2025.
For more information about the rescission of SAB 121 by SAB 122, see Deloitte’s January
27, 2025, Heads Up.