SEC Revokes SAB 121, U.S. President Explores Crypto Regulation
The U.S. Securities and Exchange Commission (SEC) has made a significant move in the crypto sphere, revoking Statement on Auditing Standards No. 121 (SAB 121). This change allows banks to offer crypto custody services without counting clients' assets as liabilities. Meanwhile, the U.S. President has signed an order to explore crypto regulation and a national Bitcoin reserve.
In the crypto market, SOL has shown remarkable momentum, outperforming both Bitcoin and Ethereum since the start of 2025. However, while XRP's depth has increased significantly, SOL has demonstrated more consistent depth over time. Despite this, Bitcoin and Ethereum still lead significantly in market depth, with SOL's liquidity accounting for only 24% of BTC's liquidity.
Several companies have shown interest in crypto futures. ProShares and VanEck have applied for futures products on SOL and XRP, although there are no regulated futures markets for these in the US. The SEC is currently reviewing 35 live ETF applications tied to digital assets, ranging from converting closed-end trusts into spot ETFs to more ambitious filings for newly minted memecoins.
Earlier this week, Bitcoin price fell below $100K due to the rising popularity of the Chinese AI app DeepSeek, triggering a risk-off market rout. Crypto-AI tokens also plunged in line with the broader market. Despite this, Crypto.com's market share in the US surged from 4% in 2023 to 47% as of last week, while Kraken and Coinbase's market share declined. BlackRock and Franklin Templeton have also submitted applications in the US for ETFs tied to digital assets, but the SEC has not yet made a decision and has postponed its review.
The revocation of SAB 121 by the SEC and the U.S. President's order to explore crypto regulation and a national Bitcoin reserve signal significant changes in the crypto landscape. Meanwhile, the crypto market continues to evolve, with SOL and XRP gaining momentum, and numerous ETF applications pending. The impact of the DeepSeek AI app on the market serves as a reminder of the volatility and interconnectedness of the crypto market.
