In a significant move for the cryptocurrency industry, the U.S. Senate recently voted 60-38 to overturn the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 121 (SAB 121). This decision, coming after a year of contentious debate, marks a pivotal moment for digital asset custodians and their regulatory landscape. SAB 121, initially issued in 2022, required cryptocurrency custodians to record customers' digital assets on their balance sheets as liabilities. This regulation was met with substantial pushback from the crypto sector, which argued that it could hinder banks and other financial institutions from providing digital asset custodial services.