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 Securities and Exchange Commission 17 CFR Part 211
[Release No. SAB 122]
 AGENCY: Securities and Exchange Commission.
 ACTION: Publication of Staff Accounting Bulletin.
 SUMMARY: This staff accounting bulletin (“SAB”) rescinds the interpretive guidance included in Section FF of Topic 5 in the Staff Accounting Bulletin Series entitled 
                        *Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users*
                         (“Topic 5.FF”).
 DATES: Effective January 30, 2025.
 FOR FURTHER INFORMATION CONTACT: Office of the Chief Accountant, at (202) 551-5300; or Division of Corporation Finance, at (202) 551-3400, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549.


SUPPLEMENTARY INFORMATION: The statements in staff accounting bulletins are not rules or interpretations of the Commission, nor are they published as bearing the Commission's official approval. They represent interpretations and practices followed by the Division of Corporation Finance and the Office of the Chief Accountant in administering the disclosure requirements of the Federal securities laws. List of Subjects in 17 CFR Part 211 Accounting
Reporting and recordkeeping requirements
Securities
 Dated: January 23, 2025. Vanessa A. Countryman, Secretary.
 Accordingly, part 211 of title 17 of the Code of Federal Regulations is amended as follows: PART 211—INTERPRETATIONS RELATING TO FINANCIAL REPORTING MATTERS
 1.The authority citation for 17 CFR 211 is amended to read as follows: Authority:
                        15 U.S.C. 77g, 15 U.S.C. 77s(a), 15 U.S.C. 77aa(25) and (26), 15 U.S.C. 78c(b), 15 U.S.C. 78
                            *l*
                            (b), 15 U.S.C. 78m(b), 15 U.S.C. 80a-8, 15 U.S.C. 80a-29(e), 15 U.S.C. 80a-30, and 15 U.S.C. 80a-37. 2.Amend the table in subpart B by removing the entry for “Staff Accounting Bulletin No. 121” and adding an entry for “Staff Accounting Bulletin No. 122” at the end of the table to read as follows: Subpart B—Staff Accounting Bulletins
 Subject
Release No.
Date
Fed. Reg. Vol.
                                 and page*         *         *         *         *         *         *Publication of Staff Accounting Bulletin No. 122
SAB 122
January 30, 2025
[INSERT 
                                **FEDERAL REGISTER**
                                 CITATION].
 Note: The text of SAB 122 will not appear in the Code of Federal Regulations. Staff Accounting Bulletin No. 122 This SAB rescinds the interpretive guidance included in Topic 5.FF in the Staff Accounting Bulletin Series entitled 
                        *Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users.*
                         Upon application of the rescission of 
                        ( print page 8493)
                        Topic 5.FF, an entity that has an obligation to safeguard crypto-assets for others should determine whether to recognize a liability related to the risk of loss under such an obligation, and if so, the measurement of such a liability, by applying the recognition and measurement requirements for liabilities arising from contingencies in Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Subtopic 450-20, 
                        *Loss Contingencies,*
                         or International Accounting Standard (“IAS”) 37, 
                        *Provisions, Contingent Liabilities and Contingent Assets,*
                         under U.S. generally accepted accounting principles and IFRS Accounting Standards, respectively. Entities should effect the rescission of Topic 5.FF on a fully retrospective basis in annual periods beginning after December 15, 2024. Entities may elect to effect the rescission in any earlier interim or annual financial statement period included in filings with the Commission after the effective date of this SAB. Entities should include clear disclosure of the effects of a change in accounting principle upon initial application of this rescission.[1] The staff reminds entities that they should continue to consider existing requirements to provide disclosures that allow investors to understand an entity's obligation to safeguard crypto-assets held for others. These requirements include, but are not limited to, Items 101, 105, and 303 of Regulation S-K; [2]
                        
                         FASB ASC Subtopic 450-20; [3]
                        
                         and FASB ASC Topic 275, 
                        *Risks and Uncertainties.*[4] Accordingly, the staff hereby amends the Staff Accounting Bulletin Series as follows: 
 Topic 5: Miscellaneous Accounting 
 FF. Removed by SAB 122


# Footnotes

1.
    
                             
                            *See*
                             FASB ASC 250-10-50-1 through 50-3 and IAS 8. 
                            *See also, e.g.,*
                             Item 302 of Regulation S-K [17 CFR 229.302] and PCAOB Auditing Standard 2820 (par. 8). Back to Citation
 2.
    
                             17 CFR 229.101, 105, and 303. Back to Citation
 3.
    
                             
                            *See also*
                             IAS 37. Back to Citation
 4.
    
                             
                            *See also*
                             IAS 1, 
                            *Presentation of Financial Statements.* Back to Citation


[FR Doc. 2025-01864 Filed 1-29-25; 8:45 am] BILLING CODE 8011-01-P