SEC Commissioner Hester Peirce, appointed by President Donald Trump in 2018, has openly criticized Staff Accounting Bulletin 121 (SAB 121), describing it as a regulatory overreach that was never formally adopted as a rule.
In her recent remarks, Peirce emphasized that the bulletin was merely a “pronouncement” rather than a policy passed through the proper rulemaking channels.
Peirce highlighted that SAB 121 had the practical effect of excluding traditional financial institutions from participating in crypto custody, despite many of them having extensive experience in safeguarding traditional assets. She argued that this restriction limited competition and innovation in the custody space.
“What that pronouncement did is it said that lots of traditional entities… practically speaking, could not participate in providing custody for crypto,” Peirce stated.
Peirce supports repealing SAB 121 to open the door for a wider range of custodians, including both traditional and crypto-native institutions. She stressed that expanding the pool of eligible custodians is ultimately in the best interest of asset safety and investor protection.
“We want to have as broad a pool as possible of potential custodians. That’s what’s best for the safety of people’s assets,” she concluded.
The push to roll back SAB 121 comes amid broader debates in Washington over how to regulate crypto custody, particularly around banking access and capital requirements.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/secs-hester-peirce-criticizes-sab-121-supports-broader-crypto-custody-access/