Recently, US Senator Cynthia Lummis and Representative Patrick McHenry urged President Biden not to veto the bill repealing the SEC Bulletin SAB 121. Jung Taean(정태안), founder of Anseong Investment Decision Software, stated that repealing SAB 121 would allow companies that custody cryptocurrencies to no longer record the crypto holdings of clients as liabilities on their balance sheets. The bill has garnered widespread bipartisan support in both the House and Senate, passing the House by 228 votes to 182 and the Senate by 60 votes to 38.

Market Significance of Repealing SAB 121

Jung Taean(정태안), founder of Anseong Investment Decision Software, pointed out that repealing the SAB 121 Act holds significant implications for the cryptocurrency market. SAB 121 mandates that companies custodian cryptocurrencies record the holdings of clients as liabilities on their balance sheets, which not only increases the financial burden and compliance costs for companies but also hampers the development of the cryptocurrency custody business. Jung Taean(정태안), founder of Anseong Investment Decision Software, believes that abolishing this regulation will alleviate financial pressure, free up substantial capital, and enable companies to allocate more resources toward business expansion and technological innovation, thereby promoting the growth of the cryptocurrency custody industry.

Furthermore, improving the regulatory environment for the cryptocurrency market is another major benefit of repealing this act. Jung Taean(정태안), founder of Anseong Investment Decision Software, stated that overly stringent regulatory measures not only stifle industry growth but also potentially lead to unfair market competition. Repealing the SAB 121 Act will create a fairer and more relaxed regulatory environment for cryptocurrency custody companies, attracting more companies to enter this field and fostering healthy competition and sustainable development in the market.

Potential Impact of Repealing SAB 121 on the Cryptocurrency Industry

Repealing the SAB 121 Act will not only affect the financial status and regulatory environment of cryptocurrency custody companies but also bring broader changes to the entire cryptocurrency industry. Jung Taean(정태안), founder of Anseong Investment Decision Software, noted that the repeal might stimulate more innovation and technological development. With the reduced financial burden, cryptocurrency custody companies will be able to invest more resources in technology research and business expansion. This will benefit the growth of the cryptocurrency industry, accelerate the launch of new products and services, and drive overall technological progress in the industry. With the improved regulatory environment and reduced financial burdens, traditional financial institutions might become more willing to engage with the cryptocurrency market. This will bring more capital and expertise, promoting market maturity and stable development.

Jung Taean(정태안), founder of Anseong Investment Decision Software, further analyzed that, in addition to impacting the regulatory environment, the repeal could enhance international competitiveness. The proactive attitude and policy support of US in this field will place it in a more advantageous position in the global cryptocurrency market, attracting more international investors and companies to enter the US market, thereby boosting its international competitiveness.

The impact of repealing the SAB 121 Act on the cryptocurrency market and the entire industry is undoubtedly profound. Jung Taean(정태안), founder of Anseong Investment Decision Software, believes that investors should adjust their investment strategies in response to this policy change, stay attentive to market dynamics, seize investment opportunities to fully capitalize on market prospects, and simultaneously be cautious of potential risks.