Connect with us

business

SEC Rescinds SAB 121, Permitting Banks to Custody Bitcoin

Published

on



In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has officially rescinded Staff Accounting Bulletin (SAB) No. 121, a controversial rule that had long hindered banks from offering bitcoin and crypto custody services. This move, announced on Thursday, signals a significant shift in the SEC’s approach to regulating bitcoin and crypto and paves the way for greater financial integration.

Introduced in March 2022 under former SEC Chair Gary Gensler, SAB 121 required institutions holding bitcoin and crypto assets for customers to record those holdings as liabilities on their balance sheets. This accounting standard created significant operational and financial burdens for banks and custodians, effectively discouraging them from providing bitcoin-related services. The rule was widely criticized by the crypto industry and lawmakers, with SEC Commissioner Hester Peirce famously calling it a “pernicious weed” in April 2023.

“Bye, bye SAB 121! It’s not been fun,” Peirce wrote in a post on X (formerly Twitter) on Thursday, following the SEC’s issuance of Staff Accounting Bulletin No. 122, which formally rescinds the guidance.

The SEC’s move to rescind SAB 121 comes just days after Gensler’s resignation and marks the start of a new era under Republican leadership. Acting SEC Chair Mark Uyeda, who assumed the role on Monday, quickly announced the formation of a crypto task force led by Peirce to craft clearer and more practical regulatory frameworks for the industry.

“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way,” the agency acknowledged in a statement on Tuesday.

With the removal of SAB 121, major banks are now expected to move swiftly to integrate bitcoin and crypto custody services into their offerings. This is a significant milestone in the financialization of bitcoin, bringing it closer to mainstream adoption. 





Source link

business

Strategy Boosts Bitcoin Holdings Above $47 Billion With Latest Buy

Published

on



In brief

  • Strategy purchased 6,500 Bitcoin last week, padding its corporate coffers by $556 million.
  • Tysons, Virginia-based Strategy (formerly MicroStrategy) now owns 538,000 Bitcoin worth $47.2 billion.
  • Strategy said the acquisition was made using proceeds from two recent equity offerings.

Strategy, formerly known as MicroStrategy, purchased 6,500 Bitcoin last week, padding its corporate coffers by $556 million, according to a Securities and Exchange Commission filing.

The Tysons, Virginia-based firm now owns 538,000 Bitcoin worth $47.2 billion following Bitcoin’s climb above $88,000 on Sunday, according to crypto data provider CoinGecko. The software firm said it scooped the asset up for an average price of $84,800 last week.

Strategy said the acquisition was made using proceeds from two recent equity offerings: the firm  received $548 million in proceeds by issuing Class A common shares, while Strategy also gained $8 million from the sale of its so-called perpetual “STRK” preferred stock.

Uncertainty surrounding U.S. President Donald Trump’s trade war has weighed on risk assets in recent weeks, as economists pencil in slower growth and higher costs for consumers in the U.S., yet Strategy has bought Bitcoin fairly consistently since mid-March. Over the past six Mondays, Strategy has said that it bought Bitcoin on five of them.

The size of Strategy’s recent Bitcoin purchases has varied, however. After buying $11 million worth of Bitcoin in mid-March, it spent $1.9 billion on Bitcoin two weeks later, per Saylor Tracker.

Strategy’s shares were recently trading at about $322, up 1.6% on the day, according to Nasdaq. The stock changed hands as high as $328 during pre-market trading on Monday but plunged as low as $317 after the opening bell.

On Sunday, Strategy co-founder and Executive Chairman Michael Saylor noted on X, formerly Twitter, that the company isn’t a niche option for gaining exposure to Bitcoin’s price anymore.

Based on public data, 13,000 institutions hold Strategy’s stock directly, along with 814,000 accounts tied to retail investors, he said. In addition, Saylor said 55 million investors have “indirect exposure through ETFs, mutual funds, pensions, and insurance portfolios.

Strategy was added to the Nasdaq 100 in December, a milestone placing it within the coveted ranks of tech giants like Apple and Meta. The company may also join the S&P 500 one day, but Strategy’s lack of consistent profits is currently a barrier, based on inclusion criteria.

Edited by James Rubin

Editor’s note: This story was updated to ensure pricing consistency throughout.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

Continue Reading

business

Strategy Buys More Bitcoin as Tariff Exemptions Send Tech Stocks Soaring

Published

on



Strategy, formerly known as MicroStrategy, acquired around 3,450 Bitcoin worth $286 million last week, the company said in a Securities and Exchange Commission filing.

Unveiling a Bitcoin purchase for the third straight Monday, the Tysons, Virginia-based firm now owns 531,644 Bitcoin worth $45.2 billion, based on the asset’s current price.Strategy paid an average price of $82,600 per Bitcoin last week, it added.

Strategy, which has shifted its focus from software development to become a Bitcoin treasury, said it meanwhile sold one million Class A common shares through an at-the-money offering program unveiled in October. Under the initiative, Strategy said it can still issue an additional $2 billion worth of common shares, alongside swaths of preferred perpetual stock.

Strategy’s shares rose 4% on Monday to around $312, as the tech-heavy Nasdaq surged 1.5%, adding on to last week’s recovery after the White House said smartphones and computers would be exempt from sweeping levies, including 125% taxes on Chinese goods, per Nasdaq.

Monday’s price action represents a dramatic turnaround after investors navigated outsized uncertainty last week, including a disclosure from Strategy that it may ultimately need to sell Bitcoin to meet its financial obligations. Amid tariff-linked concerns, Strategy’s shares fell as low as $236, or around 32% below their opening on Monday.

“No Tariffs on Orange Dots,” Strategy co-founder and Executive Chairman Michael Saylor said on X, formerly Twitter, on Sunday, referring to the way Bitcoin buys look on Saylor Tracker.

The price of Bitcoin was recently changing hands around $85 on Monday, showing a roughly 8.3% increase of the past week, according to CoinGecko. Over the past month, it’s virtually flat.

Strategy has become the world’s largest corporate holder of Bitcoin since it began accumulating the asset in 2020. Over time, as it has embraced its role as a Bitcoin treasury firm, Strategy has issued billions of dollars in debt to buy more Bitcoin than it could otherwise.

The Nasdaq-listed firm’s 531,600 Bitcoin tower over the next largest corporate holder, Bitcoin miner Marathon Digital, which is around 47,500 Bitcoin, according to Bitcoin Treasures. As of this writing, Strategy’s stash accounted for more than 2.5% of Bitcoin total supply.  

The Tokyo-based investment firm Metaplanet, which began buying Bitcoin last May, said on X on Monday that it had recently bought 319 Bitcoin worth $27 million. The company said in an update that it now holds 4,525 Bitcoin worth around $385 million.

Among publicly traded companies, MetaPlanet is currently the 10th largest Bitcoin holder, according to Bitcoin Treasuries

Edited by James Rubin

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

Continue Reading

business

Japan’s Metaplanet Buys Another $26M in Bitcoin Amid Tariff Market Uncertainty

Published

on



Metaplanet, the Tokyo-listed firm dubbed “Asia’s MicroStrategy,” has boosted its Bitcoin holdings with a fresh 3.78 billion yen ($26.3 million) purchase amid growing tension over U.S. trade tariffs. 

The company said it acquired 319 BTC at an average price of 12,849,780 yen ($82,549) per coin, bringing its total holdings to 4,525 BTC. Metaplanet plans to boost its Bitcoin holdings by 470%, targeting a total of 10,000 BTC by year-end.

The timing of the purchase comes as digital assets falter under geopolitical pressure. Bitcoin dropped more than 2% on Sunday during Asia trading hours, sliding to $83,482 as investors digested conflicting signals from Washington over the direction of U.S. trade policy toward China.

Traditional markets remained resilient despite a flurry of comments from the Trump administration regarding new tariffs on Chinese electronics. Nasdaq 100 futures rose over 1% in early trading, while S&P 500 futures climbed 0.7%.

While smartphones and semiconductors were temporarily excluded from a proposed 10% “reciprocal” tariff, President Trump clarified late Sunday on Truth Social that the same products will remain subject to a separate 20% national security levy.

Commerce Secretary Howard Lutnick said further sector-specific tariffs are expected within the next two months.

By Monday, 1 a.m. ET, Bitcoin was up just 0.4% over the last 24 hours, trading at $84,990, according to CoinGecko. Ether was up 1.8% to $1,638 over the same period. The top ten cryptocurrencies by market cap have all posted slight gains or no change.

Metaplanet has leaned heavily into Bitcoin as its core treasury asset. Last month, the company appointed Eric Trump, son of the U.S. president, to its newly formed Strategic Advisory Board, citing his “business expertise and passion for Bitcoin.”

Metaplanet is positioning itself in the mold of Michael Saylor’s Strategy, whose aggressive Bitcoin accumulation strategy has influenced a growing number of publicly listed firms to follow suit.

At the same time, the Trump administration has launched two separate initiatives: a Strategic Bitcoin Reserve, funded by seized BTC and held as a permanent national asset, and a U.S. Digital Asset Stockpile, which includes other confiscated crypto with potential for liquidation or strategic use.

Edited by Sebastian Sinclair

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.



Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon