Circle CEO: SAB 121 May Be Repealed by Trump

 
Rajpalsinh Parmar
Written By 
Rajpalsinh Parmar
January 22, 2025

In the latest interview, Circle CEO Jeremy Allaire made a huge remark, saying he is expecting the repeal of SAB 121 and a new executive order regarding cryptocurrency today. 

What is SAB 121?

SAB 121 (Staff ing Bulletin No. 121) is interpretive guidance issued by the SEC on March 31, addressing how companies safeguard customers’ crypto assets and should for them in their financial statements. 

On March 31, the SEC staff released Staff ing Bulletin No. 121, which provides interpretive guidance for a reporting entity that operates a platform that allows its s to transact in crypto-assets. The guidance is applicable to reporting entities that apply US GAAP or IFRS. 

It applies to entities that operate platforms for crypto transactions and have an obligation to safeguard customers’ crypto assets. The impacts companies offering crypto custody services, as they must now reflect these obligations in their financial statements. 

Amid the euphoria, the X writes, “With the repeal of SAB 121 we can expect competitive rates somewhere around SOFR + 50-100 bps. This would be a borrowing rate of 5.3%. With real inflation running 7-9% the BTC CAGR would need to stay above 15%. I believe this is easily done for the foreseeable future.

Trump’s New istration To Create Crypto-friendly Environment 

It’s been two days since Donald Trump officially became president of the U.S., and now the crypto community expects him to fulfill the flowery promises he made during his election campaign. 

Yesterday, the Securities and Exchange Commission (SEC) announced the formation of the crypto task force. The announcement can finally provide relief to crypto innovations, providing them with a clear pathway to establish and run their crypto-related operations.

For years, the agency has largely relied on enforcement actions to regulate the crypto space, however, this approach often left market participants uncertain about compliance requirements. 

Also Read: Secret Behind TRUMP Memecoin’s Meteoric Rise: $100 Soon?

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Rajpalsinh Parmar
Written by Rajpalsinh Parmar

Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. ionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.